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Friday, 22 March 2013

More Foreign Portfolio Managers Eye Nigerian Stocks

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Trading  session



The Nigerian stock market is to witness the influx of more foreign participation following attractive returns and efforts by the Nigerian Stock Exchange (NSE) to improve products availability, information disclosure and corporate governance among listed companies.

THISDAY checks showed that over 23 foreign portfolio managers are preparing to enter the market.  The Chief Executive Officer, NSE, Mr. Oscar Onyema, confirmed this development.
“Given the level of work the current management of the exchange has done in area of products availability and ensuring timely information disclosure by the companies, more  foreign investors are eying the market. A number of global   foreign portfolio managers have contacted us and we have hard fruitful discussions with them. Very soon we will begin to see the impact,” Onyema told THISDAY Thursday.
The Nigerian equities market has been attracting investors due to high rate of return. For instance, the market delivered 63 per cent return  within 12 months to February 29, 2013.
The CEO boss had two days ago said as part of making more products available in the market, the  exchange would list five exchange-traded funds (ETFs) this year.
The NSE had last year listed the first ETF (NewGold). But 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, saying that the target is to raise to 40 million by 2016 through various strategies that would boost financial inclusion initiatives.
He also said that to increase liquidity in the market, the NSE boss said already privatised entities such as the National Insurance Corporation of Nigeria and Nigerdock should be listed on the bourse.

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