EQUITIES’ TURNOVER DIPS BY 7.42%

Date:

The performance of equities on the floor of the Nigerian Stock Exchange (NSE), in terms of turnover, decreased by 7.42 percent in 2019 from 10.22 percent recorded at the close of transactions in 2018.

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According to a document obtained from NSE, its total volume in terms of equities fell by 20.8 percent from 101.42 billion units to 80.35 billion units while turnover value of equities declined to N962.65 billion from N1.19 trillion in 2018, representing a decrease of 19.70 percent.

EQUITIES’ TURNOVER DIPS BY 7.42%"]
EQUITIES’ TURNOVER DIPS BY 7.42%

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Speaking recently at the presentation of key performance of the Exchange in 2019 and prognosis for the market in 2020, chief Executive officer of the Exchange, Oscar Onyema, said the Nigerian capital market mirrored the performance of the larger economy, which continued its moderate path of recovery, growing by 2.28 percent in the third quarter of 2019.

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“The Nigerian bourse witnessed the impact of various factors, including a week macroeconomic landscape; fiscal and monetary policy direction; underwhelming trends in foreign portfolio investments; concerns around the stability of the naira and moderate corporate earnings. While these factors led to a negative performance in the equity market during the year, reflecting a flight to safety,” Onyema explained.

EQUITIES’ TURNOVER DIPS BY 7.42%
EQUITIES’ TURNOVER DIPS BY 7.42%

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According to him, the reduction in market velocity as regards equities was indicative of how the economy performed.

“We saw a sustained downward trend and the market like Nigeria, velocity tends to drop. If you look at what has already happened this year, there has been a significant increase so I think the culture here is that velocity tends to increase when the market is going up and on our part, we need to do better job of educating investors around the fact that even in a down market, there are opportunities to make money including from securities lending and appropriate measures because there are quite a number of individual stocks that did quite well in 2019,” he said.

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The NSE boss thereafter assured the investing community that the Exchange will continue to develop new strategic partnerships with the goal of delivering better products and services to its customers and maintain momentum in executing NSE’s 2018-2021 corporate strategy in its efforts to elevate the prominence of Africa’s global financial markets. However, market operators who spoke to daily sun called on the federal government to focus more on building up good politics and economic governance.

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Eze said, “The market is an index with which the economy is measured. The capital market is the heart beat of any economic system, be it advanced or emerging economy. Yes, the elections took their toll on the market but that was not the only reason was that managers of the economy were looking at the politics of governance rather than the economics of governance and so the market reacted to that. “our economy did not do too well looking at the inflation rate being on the high side and even currency parameters were nothing to write home about.”

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Chief Executive Officer, Crane Securities, Mike Eze, noted that 2019 elections as well as the focus on politics left the capital market susceptible to low transactions done in 2019.

Ibekwe Cynthiahttp://evergreennewsonline.com
Ibekwe Cynthia .C. is a certified senior reporter/graphic designer/Advert executive at Evergreennewsonline.

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