The Nigerian capital market is on the way to becoming the best performing capital market in the world for the year 2012.

This is on the back of the consistent stability recorded in the equities market in the last few months.

The Director-General of the Securities and Exchange, Ms. Arunma Oteh, stated this at the maiden edition of the SEC Journalists Academy 2012 on Friday.

According to her, already, the Nigerian capital market has become a force to be reckoned with in the global economy, owing to its performance over the last few months.

She said, “I think we are about to make history in our market because for the first time, people recognise the importance of the capital market to transforming the economy, and that is what happens, where one has had a bad experience like we did in Nigeria.

“The good news is that we are on course to having the strongest and best performing capital market in the world. We have recorded over 30 per cent gain on out Index so far this year, and this is going to continue, because it is not driven by euphoria but by fundamentals.

“And so, it is an exciting time for us in the SEC and the other operators, as everyone realises that the key reforms carried out in the market are now paying off for us, which is the reason a country like Spain (whose market is still struggling) is looking at what we did in Nigeria.”

She added that the improvement in the market indicators cut across major sectors, adding that it was not just the banking sector that had witnessed increased activities following the restructuring, but also the Fast Moving Consumer Goods sector too.

She said, “There is clearly an acknowledgment that the Nigerian market is a market to be in, but not just the equities market, we also have an important bond market which is recognised internationally.

“This is even more obvious from the fact that Barclays would in March 2013, admit the FGN bonds into their Index. Already, JP Morgan has included the Nigerian bonds in their index, and so, this gives face to the fact that Nigeria has become the preferred investment destination.”

Also speaking, the Managing Director, Quest Advisory Services Limited, Mr. Bayo Rotimi, said that the prospects of increased growth in the Nigerian capital market remained huge.

He said, “The amended Pension Reforms Act is expected to result in increased investment in the capital market by the Pension Funds Administrators.

“Also, it is likely that some proportion of the Sovereign Wealth Fund would be invested in the market, and all this would boost the market in the next few months.”

http://www.punchng.com/business/capital-market/nse-to-emerge-2012-best-performing-market-oteh/