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CAPITAL MARKET UPDATE

of The Nigerian Stock Exchange
Presented by
Oscar N. Onyema, OON
CEO, Nigerian Stock Exchange

2020 Capital Market Committee (Webinar) Meeting

20 August 2020
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Welcome
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Management

CONGRATULATES
The new Director General
of the Securities and Exchange
Commission

Dr. Lamido Yuguda CFA

and other Newly Appointed

Executive Commissioners

August 2020 2
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Outline
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Important Developments with Implication on Capital Market Activities

NSE Market Snapshot

COVID-19 and The NSE’s Response

Issues for CMC Deliberation

Servicing
Africa’s
Economy

August 2020 3
 | Important
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MasterDevelopments
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1 MARKET TRENDS
• The Nigerian capital market responded positively to the gradual easing of the nationwide lockdown and resumption of business
activities in Q2 2020 as the NSE ASI posted a return of 14.92% for the quarter, albeit, year-to-date returns remain negative at -10.10%.

• In comparison with benchmark indices, the NSE ASI was the second best performing in the review period as the EGX 30, Nairobi ASI,
BRVM Composite Index and JSE/FTSE ASI posted year-to-date returns of -23.95%, -20.74%, -18.15%, and -1.99% respectively.

• Rising inflation continued to erode asset value as Nigeria’s real yield remained the lowest amongst selected comparators and in the
negative territory for the second consecutive quarter.
• There has been a significant reduction in the inflow of foreign portfolio investments, attributable to the instability of the value of
naira against the dollar; and adjustment of the exchange rate from N307/$1 to N360/$1 in March 2020, and subsequently to N380/$
in July 2020 by the Central Bank of Nigeria.

2 PERFORMANCE OF BENCHMARK INDICES*

STOCK PERFORMANCE OF MAJOR AFRICAN EXCHANGES - YTD CROSS COUNTRY YIELD COMPARISON – Q2 2020

0% 40%
Inflation 10-year Bond Yield Real Yield
-5% -1.99% 30%
-10% 9.23%
20% 7.13%
-10.10% 10.97%
-15% 5.16%
10% 14.32% 12.61%
-20% 9.26%
-18.15% 12.40%
-20.74% 5.09% 5.48% 4.10%
-25% 0% -1.43%
-23.95%
-30% -10%
EGX 30 Nairobi BRVM CI NSE ASI JSE/FTSE Egypt Nigeria Kenya South Africa
ASI ASI
August 2020 4
*As at 15 July, 2020. Inflation rates are the most recent figures available from primary source.
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Snapshot
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1 NSE TOTAL MARKET CAPITALIZATION (N’Trn)* 2 EQUITY VALUE TRADED: DOMESTIC VS. FOREIGN
28.59
25.89
22.92 46% 55% 53% 49% 51%
21.90 60%
17.00 16.15

54% 45% 47% 51% 49%

40%

2015 2016 2017 2018 2019 Jul' 20 YTD 2015 2016 2017 2018 2019 Jun' 20
Foreign Domestic YTD

3 DOMESTIC INVESTOR ACTIVITY: Jun’ 2020 YTD 4 TOTAL FOREIGN PORTFOLIO FLOW (EQUITY)
N1.02Tn N0.52Tn N1.21Tn N1.22Tn N0.94Tn N0.40Tn

36%
54% 50% 53% 56%
67%
47% Institutional
53% Retail
64%
46% 50% 47% 44%
33%

2015 2016 2017 2018 2019 Jun' 20 YTD

Inflow Outflow
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*As at July 31, 2020
 | COVID-19
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The NSE’s
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Response
• Transition to Remote Business Operations: In response to the ongoing COVID-19 pandemic, The NSE - as part of our Crisis
Management and Business Continuity Plan - activated a remote working plan for employees excluding essential staff on
March 24, 2020; while the Dealing Members were completely migrated to remote trading effective March 25, 2020,
following the temporary closure of the trading floors as The NSE. The NSE has developed an internal dashboard that tracks
the pandemic, and will guide our resumption protocols.

• Regulatory Palliatives: To attenuate the impact of the pandemic on its stakeholders, The NSE, with the approval of the
Securities and Exchange Commission (SEC), granted various regulatory palliatives to the Dealing Members, including but
not limited to the extension of timelines for filing financial returns, completion of other regulatory reports, and
settlement of financial obligations.

• Mask for All Campaign: To support the Federal and State Governments in Nigeria, and demonstrate corporate citizenship,
The NSE launched a masks wearing movement anchored on donations by corporate organisations, with a goal of providing
400 million face masks to Nigerians, especially the low-income households. The NSE kicked off the campaign with a N40
million donation aimed at donating over 100 thousand face masks and educating Nigerians about COVID-19 prevention
and control. More information on this initiative can be accessed via: www.masksforallng.com.

• Capital Market Support Committee for COVID-19 (CMSCC): In furtherance of the concerted efforts being made by the
Capital Market to support the fight against the COVID-19 pandemic, The NSE donated an ambulance and N27.5 million in
cash to redeem its pledge of N60 million to the CMSCC.
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| Issues
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CMC
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Deliberation
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• Funding of the • Report on the Capital • Companies and Allied

Investments and Market Pilot Program Matters Act, 2020
Securities Tribunal for Fee Reduction

• Deduction and • Cyber Security Threats • Business Continuity

Remittance of Taxes and Fraud Prevention

August 2020 7
| Disclaimer
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The Presenter is not responsible or liable for Third Party Information as contained herein.

For authorized circulation, the document may only be circulated as a PDF to eliminate unauthorized changes to
information contained herein.

For more information on this presentation, please contact Oscar N. Onyema, OON, Chief Executive Officer at
oonyema@nse.com.ng; or Tinuade Awe, Executive Director, Regulation at tawe@nse.com.ng.

August 2020 8
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THANK YOU

August 2020 9