The chief executive officer (CEO) of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, has assured stakeholders in the nation’s capital market that The Exchange would soon become a preferred investment destination for both local and international investors.
Onyema, who made the statement while welcoming representatives of UBS Wealth Management, who were on a fact-finding mission to The Exchange, said that Lagos was fast becoming a hub for regional financial markets.
UBS, which led a group of global institutional investors and came into the country through BGL Plc, is one of the largest financial institutions with over $1 trillion under management and an overall market capitalization of $66 billion. It is also the largest private bank in the world, with $450 billion in client assets. It has 135 years of experience, with an unmatched heritage of success in serving substantial investors globally.
The chairman of BGL Plc, Dr. Kalu Idika Kalu, who accompanied the visitors to The Exchange, explained that the Nigerian capital market had remained attractive to discerning investors and that the visitors were in the market because they saw value in it.
Kalu further said that BGL wanted to encourage international investors to participate in Nigerian markets and that once they came, it would encourage local investors to do same.
Responding, Onyema explained that the present management of The Exchange has already taken some steps that would encourage rapid growth and development of the market.
He called for zero tolerance to violation of post-listing requirements; ongoing trading platform upgrades; strengthening The Exchange workforce; broadening of investment options; transparent and focused leadership, as well as working together with relevant government agencies to ensure that critical sectors of the economy, like power, telecom, upstream oil and gas and agriculture, are listed and traded on The Exchange.
Onyema also highlighted trading of bonds in the secondary market, among others as priority areas.
Speaking on the liquidity challenge in the market, he said that The Exchange was working with potential market makers to develop a market structure that would enable them to start operating soon. According to him, some companies earlier selected by the Securities and Exchange Commission (SEC), as well as 10 topmost stock broking firms on The Exchange were participating in the discussions.
He also told them that The Exchange was collaborating with industry participants on securities lending and short-selling. He lamented that traders only make money in Nigerian market today when the market goes up, but that participants should be able to make money whether the market was up or down. He also promised that his management would encourage and support the introduction of hedge funds into Nigerian capital market.