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BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market - Business - Nairaland

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BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by 7Ebisco: 7:39am On Jan 15, 2019
The Chief Executive Officer of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, yesterday said foreign investors pulled out N605.54 billion from the Nigerian equities market in 2018 because of a shift to higher yielding assets with lower risks in developed countries, coupled with the perceived political risks in the forthcoming general elections.

The stock market fell by 17.8 per cent in 2018 after recording a growth of 42.3 per cent in 2017.
Giving a recap of the stock market performance in 2018 and outlook for 2019 during a media briefing in Lagos, Onyema said the outflows last year was 50.53 per cent higher than the N402.26 billion repatriated by foreign investors the preceding year.
However, he said most of the foreign investors would still return considering the fact that the Nigerian market has potential to deliver high returns.

The CEO, who said the market need foreign investors the way retail domestic investors are needed, assured that the exchange was working on ways to deepening the participation of retail investors in the market going forward. He expressed optimism that the market will bounce back in the second half (H2) of this year.

“Domestically, we believe market sentiments in the first half (H1) of the year will be driven by uncertainty in the oil prices as well as the 2019 general elections. Accordingly, we anticipate volatility in equities market in H1 in 2019 with enhanced stability post-elections. We believe swift approval and implementation of the 2019 budget may have a positive impact on the companies’ earnings as well as consumer spending. Therefore, we anticipate a return of listings during the year with an uptick in market activity during the H2 of 2019,” he said.
Speaking on the protection of domestic investors, Onyema assured that the exchange would ensure that listed companies stick to listing requirements for the benefits of shareholders.

He said the stock exchange was also working closely with listed companies to assist them to be able to comply with the listing requirements, saying that delisting by some companies should not be a cause of worry.

He said that to enhance the exchange’s listing prospects, “we have strengthened our government engagement efforts on privatisation and listing of state-owned enterprises, and we expect to take advantage of opportunities within this space during the year. We also intend to maintain our collaborative efforts with public and private sector stakeholders to advocate for market friendly policies, and cater to infrastructure financing needs as well as other capital requirements necessary for sustainable economic growth. The exchange intends to work with the private sector as well, to catalyse the listing of more companies,” Onyema explained.

He disclosed that a search for an alternative asset class opposed to equities led to an increase of 11.7 per cent in the NSE fixed income market capitalisation to N10.17 trillion from N9.10 trillion in 2017.
Turnover, he said, also increased by 22.34 per cent in 2018, compared to 2017.
Onyema added that the NSE’s Exchange Traded Fund(ETF) market witnessed reduced activity on the back of reduced risk appetite in the market.
“The best performing ETF was the Stanbic Pension ETF as it returned 16.37 per cent, indicative of the effect of the recently implemented multi-fund structure for pension fund administrators,” he said.

Looking ahead, Onyema said, the exchange was working on the final stages of the demutualisation process since the bill has been signed into law and assented to by President Muhammadu Buhari.
He added that NSE has completed required technological enhancements for the launch of derivatives products.
“Rulebook has been created and is currently undergoing approval process alongside on boarding of dealing members,” the NSE boss added.

https://www.thisdaylive.com/index.php/2019/01/15/onyema-explains-withdrawal-of-n606bn-from-equities-market/?amp

1 Like

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Kayceo2010: 7:52am On Jan 15, 2019
K
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by chiventoline(m): 7:53am On Jan 15, 2019
ELECTION.
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by MANNABBQGRILLS: 7:53am On Jan 15, 2019
He expressed optimism that the market will bounce back in the second half (H2) of this year.

We really do hope so.
God bless Nigeria.

2 Likes 3 Shares

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Boyooosa(m): 7:54am On Jan 15, 2019
Olopa o! shocked
Make dem do this their election comot Jere, make road clear.
We are tired of political propagandas leftandright.
Oh Lord, I pray thee, let the Brains rule this nation again! Amen!

1 Like

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by truthfulparrot(m): 7:55am On Jan 15, 2019
The economic signals are very bad.....Nigeria is about to enter a very troublesome economic tsunami and people are busy playing politics!

Foreign investors are pulling their investors out of Nigeria due to ominous signal of a volatile election, coupled with security and pendulum-like economy policy of APC government.

The most alarming fact that Nigerians are not aware of is that we are faced with imminent food shortages and starvation. Forget about the annoying propaganda by the government on agriculture. The fact is that we are producing less now due to the fact that herdsmen, bandits and bokoharam attacks has displaced farmers producing more than 40% of the food we consume in this country. These farmers are located in Benue Basins, Lake Chad area, Zamfara, Yobe axis etc.

Despite all the lies about rice productions, Nigeria is still importing more than 60% of its rice consumption. Granted the government pumped money via anchor program, but the environment is not conducive for farmers and our yield per acre is still very low, not to talk of processing and transportation cost. A lot of rice farmers in Lake Chad basins and Zamfara have abandon their rice farms due to insecurity.

Honestly the two major candidates for the presidential election are not the best for this country, but we may have no other alternative than to go for lesser devil. APC may plunge the country into economic Armageddon

8 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by kaen1317: 7:56am On Jan 15, 2019
You know the real reason but u are afraid to talk because of your position. Let me give u a lifeless clue

4 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by yesloaded: 7:57am On Jan 15, 2019
personally, I won't gamble with my hard earned money so I don't blame those who pulled out. those at the helms of affairs concerning Nigeria economy doesn't have what it takes to be there, let's be honest with ourselves.

1 Like

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by bestman09(m): 7:57am On Jan 15, 2019
U
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Nigga44: 8:01am On Jan 15, 2019
hmmm.......bad times ahead.

Buhari is a curse.

2 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by jideflash(m): 8:05am On Jan 15, 2019
Can't wait for this kangaroo election to be over. Blood (red) everywhere on the stock exchange.

2 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Omeokachie: 8:10am On Jan 15, 2019
Buhari's body language drove them away

1 Like

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Nobody: 8:13am On Jan 15, 2019
If you are benefitting one thing or two from Buhari and you come online to praise him, i can understand. Dont think i dont, cos most people follow their stomach around. But if you dont benefit anything and yet dying of hunger and hardship, you are a curse to yourself and your generation. Buhari is a colossal demonstrated failure and you need to start saying and acting it.

2 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Yankee101: 8:18am On Jan 15, 2019
Well done Buhari
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by oshionelecky: 8:31am On Jan 15, 2019
truthfulparrot:
The economic signals are very bad.....Nigeria is about to enter a very troublesome economic tsunami and people are busy playing politics!

Foreign investors are pulling their investors out of Nigeria due to ominous signal of a volatile election, coupled with security and pendulum-like economy policy of APC government.

The most alarming fact that Nigerians are not aware of is that we are faced with imminent food shortages and starvation. Forget about the annoying propaganda by the government on agriculture. The fact is that we are producing less now due to the fact that herdsmen, bandits and bokoharam attacks has displaced farmers producing more than 40% of the food we consume in this country. These farmers are located in Benue Basins, Lake Chad area, Zamfara, Yobe axis etc.

Despite all the lies about rice productions, Nigeria is still importing more than 60% of its rice consumption. Granted the government pumped money via anchor program, but the environment is not conducive for farmers and our yield per acre is still very low, not to talk of processing and transportation cost. A lot of rice farmers in Lake Chad basins and Zamfara have abandon their rice farms due to insecurity.

Honestly the two major candidates for the presidential election are not the best for this country, but we may have no other alternative than to go for lesser devil. APC may plunge the country into economic Armageddon

Since you know nothing about Economics, wouldn't it be better you avoid making comments. Market volatility is inevitable in run up to elections into offices that shape and determine economic policy. This is true the world over.

Wannabe analysts everywhere these days.
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Ruddyman(m): 8:39am On Jan 15, 2019
Hmmm
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by truthfulparrot(m): 8:45am On Jan 15, 2019
oshionelecky:


Since you know nothing about Economics, wouldn't it be better you avoid making comments. Wannabe analyst.
I can see you are an aspiring entrepreneur. I don't need to flaunt my credentials here, but I have been on this field for more than 20 years. But my sincere advise to you is that you will not go far if you don't cultivate an open mind and develop the habit of doing some rigorous fact finding before commenting or taking actions. Don't allow your emotion and sentiment to limit your potentials.

Do yourself a favour. Cross check my facts and figures.

2 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by kenostika(m): 9:43am On Jan 15, 2019
oshionelecky:


Since you know nothing about Economics, wouldn't it be better you avoid making comments. Market volatility is inevitable in run up to elections into offices that shape and determine economic policy. This is true the world over.

Wannabe analysts everywhere these days.
Which world over?Since you claim to know much then dispute his points.Why are you so insensitive to the calamity on ground or are you benefiting from this grand failure?
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by labusinessguide: 9:50am On Jan 15, 2019
Isn't it interesting that many people have little or no idea the economic woes of this current government.

We can say that many people have little or no idea how government policies and leadership of a country affects her economy.

Yet, we fan the ego of political leaders who are out to manipulate and create sovereign wealth for themselves and their cronies.

Well, we will definitely live to see the outcome of this election...maybe then we will have a better grasp of the chaos in the economy
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Truth234(m): 10:06am On Jan 15, 2019
truthfulparrot:
The economic signals are very bad.....Nigeria is about to enter a very troublesome economic tsunami and people are busy playing politics!

Foreign investors are pulling their investors out of Nigeria due to ominous signal of a volatile election, coupled with security and pendulum-like economy policy of APC government.

The most alarming fact that Nigerians are not aware of is that we are faced with imminent food shortages and starvation. Forget about the annoying propaganda by the government on agriculture. The fact is that we are producing less now due to the fact that herdsmen, bandits and bokoharam attacks has displaced farmers producing more than 40% of the food we consume in this country. These farmers are located in Benue Basins, Lake Chad area, Zamfara, Yobe axis etc.

Despite all the lies about rice productions, Nigeria is still importing more than 60% of its rice consumption. Granted the government pumped money via anchor program, but the environment is not conducive for farmers and our yield per acre is still very low, not to talk of processing and transportation cost. A lot of rice farmers in Lake Chad basins and Zamfara have abandon their rice farms due to insecurity.

Honestly the two major candidates for the presidential election are not the best for this country, but we may have no other alternative than to go for lesser devil. APC may plunge the country into economic Armageddon

So many factors contributed to the surge in capital outflow in 2018, sadly it will continue in 2019, at least the first half. I explained it in my Nigeria's economic outlook for 2019 here https://www.nairaland.com/4944491/nigerias-economic-outlook-2019 .
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by Fweezy(m): 10:17am On Jan 15, 2019
[b]The CEO, who said the market need foreign investors the way retail domestic investors are needed, assured that the exchange was working on ways to deepening the participation of retail investors in the market going forward. He expressed optimism that the market will bounce back in the second half (H2) of this year.

“Domestically, we believe market sentiments in the first half (H1) of the year will be driven by uncertainty in the oil prices as well as the 2019 general elections. Accordingly, we anticipate volatility in equities market in H1 in 2019 with enhanced stability post-elections. We believe swift approval and implementation of the 2019 budget may have a positive impact on the companies’ earnings as well as consumer spending. Therefore, we anticipate a return of listings during the year with an uptick in market activity during the H2 of 2019,” he said.
Speaking on the protection of domestic investors, Onyema assured that the exchange would ensure that listed companies stick to listing requirements for the benefits of shareholders.

He said that to enhance the exchange’s listing prospects, “we have strengthened our government engagement efforts on privatization and listing of state-owned enterprises, and we expect to take advantage of opportunities within this space during the year. We also intend to maintain our collaborative efforts with public and private sector stakeholders to advocate for market friendly policies, and cater to infrastructure financing needs as well as other capital requirements necessary for sustainable economic growth. The exchange intends to work with the private sector as well, to catalyse the listing of more companies,” Onyema explained.[/b]




Mr CEO, please stop deceiving unlearned Nigerians. Why do you need more local private companies listed on the NSE when you have allowed the likes of Dangote and foreign multinationals operating in every sector of the economy e.g MTN, TOTAL, TREVI, UAC, Nestle, Julius Berger etc to thrive and snuff out competition from local companies and investors? The Nigerian currency is hinged to the dollar because these large corporations invest dollars and also make their profit in dollars right under our noses, hence we operate a dollarized economy here. We therefore dont need foreign investment the same way we need local investment, sir. We need foreign investment much much more than local investment. Period!
You are not the man going to single-handedly approve and implement 2019 budget swiftly to have positive impact on the economy as you have claimed and the people going to do so have never passed a single budget on time in the last 3 years and presently no interest in the NSE right now but on election campaign and re-election. Dont force your beliefs and optimism down our throats. We are talking about reality here. Your supposed efforts at engaging private companies to invest in the Nigerian economy is all hogwash, until you list out in clear-cut bullet points what these so-called friendly market policies are, how you put them in place and what impact they have had in recent times. If your so-called market friendly policies did nothing to stop private investors from pulling their funds out of the country, then please stop selling these disastrous ideas to us that your policies will favour local investors.

2 Likes

Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by datribune: 10:42am On Jan 15, 2019
Liar. There's loss of faith in d market. Only a foolish ordinary man will invest in a stock market that has lost all credibility. It took Nigerians' loss of their hard-earned money to know that d Nig Stock Market, wit its insider trading & other manipulations by d strong & wealthy is a massive scam.
We remember d Dangote/Otedola AP share saga.
In 2008, my family lost over ₦15M to d scam that is d NSE.
Put ur money in d Nig Stock Mkt at ur own peril
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by jabolo(m): 12:09pm On Jan 15, 2019
datribune:
Liar. There's loss of faith in d market. Only a foolish ordinary man will invest in a stock market that has lost all credibility. It took Nigerians' loss of their hard-earned money to know that d Nig Stock Market, wit its insider trading & other manipulations by d strong & wealthy is a massive scam.
We remember d Dangote/Otedola AP share saga.
In 2008, my family lost over ₦15M to d scam that is d NSE.
Put ur money in d Nig Stock Mkt at ur own peril

I believe the stock market has come a long way since 2008. This is why you had the huge foreign inflows, credibility is no longer an issue. Liquidity still is, but that is a problem that is tied to widespread local acceptance of the stock market as a viable place for business. Many people are making a living off it quite legitimately.

Any foreign investment into a place like Nigeria is always wary of political risk. This is why private investors in schemes such as large infrastructure deals often cast around for some political risk insurance or some form of guarantee for their money. The stock market is 'naked' as regards this kind of risk and such money is very 'skittish' when a political event like the upcoming elections is imminent. It is coded into their risk algorithms and has nothing to do with our underlying economy which, in my view, is ticking along ok never mind the naysayers.

You do yourself a disservice, as a local investor - who, by definition, if not totally oblivious should be less resilient to political risk considerations - and you do not assess this current market as an opportunity to pick up additional value shares.

That foreign money will be back once the election is settled. And, if the country does indeed go up in a conflagration, what do you have to worry about? You'd be in far deeper doodah then anyway.
Re: BREAKING: Onyema Explains Withdrawal Of N606bn From Equities Market by datribune: 12:38pm On Jan 15, 2019
jabolo:


I believe the stock market has come a long way since 2008. This is why you had the huge foreign inflows, credibility is no longer an issue. Liquidity still is, but that is a problem that is tied to widespread local acceptance of the stock market as a viable place for business. Many people are making a living off it quite legitimately.

Any foreign investment into a place like Nigeria is always wary of political risk. This is why private investors in schemes such as large infrastructure deals often cast around for some political risk insurance or some form of guarantee for their money. The stock market is 'naked' as regards this kind of risk and such money is very 'skittish' when a political event like the upcoming elections is imminent. It is coded into their risk algorithms and has nothing to do with our underlying economy which, in my view, is ticking along ok never mind the naysayers.

You do yourself a disservice, as a local investor - who, by definition, if not totally oblivious should be less resilient to political risk considerations - and you do not assess this current market as an opportunity to pick up additional value shares.

That foreign money will be back once the election is settled. And, if the country does indeed go up in a conflagration, what do you have to worry about? You'd be in far deeper doodah then anyway.

Let's not deceive ourselves. d Nigerian stock market has been & is being used to hoodwink unsuspecting people who ar merely looking for where to invest their monies only to be victims of a very very corrupt system which benefits mainly a few who manipulate d system to their advantage while d majority small investors lose money. Some small investors may benefit but they ar in d minority. d market is not run to favor them but to favor only a very few.
Dubious foreign Crooks masquerading as investors hav always flocked to d Nig Stock Market because they get away with many things that they won't in other climes where d markets are well regulated. Even companies on d edge of bankruptcy, cook their books & get listed on our stock exchange. d NSE is a sham & a joke.
Frm 2008, nothing has changed. d Market is still being manipulated. d foreign money isn't frm serious investors & multinationals but frm Crooks looking to make a fast buck frm a rigged, dysfunctional system.

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