*Targets to double 2022 achievements, drive more technology firms to NGX
By Motolani Oseni
Following the Nigerian Exchange Limited (NGX) strong performance in 2022, Chief Executive Officer, NGX, Mr Temi Popoola, has said 2023 likely to be dawn of new day for market and the Nigerian economy
The NGX recorded landmark transactions for the year under review, this is even as the Exchange targets to doubling down on its 2022 achievements and expanding on several levers, while it aimed at driving more technology companies to the Exchange.
Speaking at the NGX 2022 Market Recap and 2023 Outlook held on Wednesday, Popoola said, “In 2022, the equities market performance was evidenced by the 19.98 per cent increase in the NGX All-Share Index, which rose from 40270.72 to 51,251.06 just as the market capitalisation also closed at a high of N27.92trillion, up from N21.06trillion the previous year.
“The total turnover of trades in 2022 improved by 27 per cent from N916billion to N1.16 trillion year-on-year from 2021.Market participation was heavily skewed to the domestic investors. The Fixed Income market saw a slight uptick in turnover to N3.89bn in 2022 from N3.53bn recorded in 2021. This represents a 10.20 per cent YoY increase.
“The Exchange Traded Funds market capitalisation increased from N7.35Bn in 2021 to N8.42Bn in 2022, representing a 14.56 per cent increase in the market capitalisation. Stanbic IBTC ETF 30 which tracks the performance of NGX 30 index was the best performing ETF in 2022, having began the year at N68.5 and closed at N245, reflective of 257.66 per cent returns. ETF transactions fell from N34.22bn in 2021 to N211.02milllion in 2022. This represents a 99.38 per cent decline in ETF turnover.
“Altogether, this signalled a good year for the Exchange despite global macroeconomic headwinds,” Popoola added.
On landmark listings during the period under review, he said: “The yearly performance can be attributed in part to the N4.3trillion in listings recorded by NGX across Equities and Fixed Income markets. These listings included the raising of N2.54trillion of bond listings for the Federal Government of Nigeria, as well as equity listings totalling N1.35trillion from companies such as BUA Foods Plc and Geregu Power Plc.
Commenting on the partnerships secured in 2022, he said that NGX partnered with MTN Nigeria to further enhance retail participation in the country’s capital market. NGX also forged strategic partnerships by signing Memoranda of Understanding with the Bank of Industry and Dubai Financial Market to deepen the capital market and build capacity for inclusive growth.
On product development and innovation, Popoola noted that April 2022 was a particularly significant month, with the launch of West Africa’s first Exchange Traded Derivatives market on NGX. This innovative development expands the exchange’s offerings and cements its position as a leader in the African financial market.
“The approval of the NGX Technology Board Listing Rules by the Securities and Exchange Commission (SEC) and the hosting of the Made of Africa Awards, which recognised and rewarded innovation and compliance were the highlights in December. The approval of the listing rules further demonstrates NGX’s commitment to providing a reliable and efficient platform for capital raising and positions the Exchange as an attractive destination for capital formation by companies within the Technology sector.”
Speaking on the NGX outlook for 2023, Popoola said: “NGX would take a flexible approach to strategy execution in 2023, doubling down on its 2022 achievements and expanding on several levers.
“As you know, the NGX Technology Board Listing Rules were approval by the apex regulator, the Securities and Exchange Commission in December 2022. With this, we aim to drive more technology companies to the Exchange and deepen capital formation in the technology sector. Currently we are in consultations with stakeholders in the sector and we are confident of securing a few big names within the year,” the CEO added while speaking at the event.
“On strategic partnerships, we will be forging more with development finance institutions, banks, both local and international to further develop the market. We aim to do more on trading where we improve data dissemination to attract a larger investor base, especially from the retail side. We will be using listings as a vehicle for meeting strategic aspirations as the new dispensation comes in through increased advocacy and engagements”, he said.