Wednesday, 27 March 2013

Nigerian Stock Exchange to List Five ETFs this Year

Nigerian Stock Exchange to List Five ETFs this YearThe Chief Executive Officer of the Nigerian Stock Exchange (NGSE), Mr. Oscar Onyema, said the exchange would list five exchange-traded funds (ETFs) this year to increase products available to investors.

He also said the exchange is putting strategies in place to increase the number of investors from five million to 40 million by 2016. The NSE had last year listed the first ETF (NewGold).

Speaking at the BusinessDay Capital Market Annual Conference in Lagos yesterday, Onyema said more ETFs would be listed this year, just as he restated the call for the listing of already privatised companies of government on the bourse.

He noted that with more investors and support of government through right policies, the $1 trillion market capitalisation target of the exchange by 2016 would be achieved.

According to him, the market currently has only about five million investors. He added that the target was to raise to 40 million by 2016 through various strategies that would boost financial inclusion initiatives.

Speaking on the topic: "Increasing liquidity for $1trillion capital market by 2016," Onyema said the market could only achieve the target through favourable government policies.

He noted that exchange had embarked on various initiatives and strategies aimed at repositioning the market.

To increase liquidity in the market, the NGSE boss said already privatised entities such as the National Insurance Corporation of Nigeria (NICON) and Nigerdock should be listed on the bourse.
"The Federal Government should also expedite action on its privatisation exercise and divest from the Nigerian National Petroleum Corporation to ensure subsequent listing of the companies on the exchange. We need favourable policies from government such as signing Petroleum Industry Bill (PIB) into law, getting viable local contest and privatisation of publicly owned institutions. Providing an enabling environment and appropriate tax regime will help to engender more listings on the nation's bourse," he said.

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