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2017/2018 NSE FACT BOOK 2017/2018 NSE FACT BOOK
The Performance Documentary of Listed Nigerian Companies The Performance Documentary of Listed Nigerian Companies

2017 Annual Review and 2018 Outlook

1. NSE Market Performance 2017 Improving Macroeconomic Condi ons levels, as market turnover increased by 121% to N1.27Tn. 1.3. NSE ETF Market Review
Fig. 1 Infla on and GDP growth (%) For the second consecu ve year, domes c investment
Emerging from recession in the second quarter of 2017, flows outweighed FPI flows, albeit marginally. Overall, the The NSE's ETF market witnessed increased ac vity across
Nigeria witnessed a rebound in investment ac vity which 2% 19% domes c retail segment recorded the least growth during key metrics in 2017, recording a 272% year-on-year growth
saw the NSE recover from the macroeconomic overhang of the year. As at November 2017, the value of domes c retail in trade volumes, 33% growth in turnover and a 39.5%
the commodity down-cycle, to become the third best 18% trade totaled N364Bn which represents a modest year-on-year increase in market capitaliza on to close the
performing market of 2017 globally.¹ (Fig. 1 & 2) 1% increment of 39% from the previous year, compared with year at N6.69Bn. This is a ributable to growing adop on of
the asset class by investors and asset managers, as well as
the triple-digit growth recorded in all other investor
The market recovery was driven by several factors Real GDP Growth 17% Infla on classes. Reviewing FPI trends for the year, we note that the new issuance of 2017- the Stanbic IBTC Asset
including: 16% foreign inflows outpaced ou lows in 2017, with posi ve Management Limited (SIAML) Pension ETF 40 - which is the
i. Gradual economic recovery vis-à-vis improvement in 0% net flows sustaining from March 2017, and peaking in NSE's first pension based ETF.
global oil prices, domes c output and stronger foreign J F M A M J J A S O N 15% August 2017 on the back of posi ve economic data
reserves engendering greater FPI confidence; releases such as the second quarter GDP report and rising With regard to market performance, the Ve va Banking
ii. Improvement in the ease of doing business as Nigeria PMI readings. ETF posted the highest return of 70.00% in the ETF market
-1% 14%
climbed 24 points in the World Bank EOD Rankings; and segment, closely mirroring the gains recorded by the
iii. Improvement in FX stability following favourable CBN GDP growth Infla on IPO ac vity in the year remained mute, however there banking sector and its benchmark - The NSE Banking Index,
policies (e.g. Investor & Exporter window, SME lending were several other posi ve indicators including the revival whilst the NewGold ETF – which tracks the spot price of
window, etc.). of supplementary lis ngs and the return of new issuances. gold – posted the second highest returns (47.87%). The
The market saw a nine (9) fold increase in the value of new Sector Based ETFs – tracking the NSE Banking, Consumer
NSE: No. 1 in Africa and 3rd Globally
Real GDP growth of 1.40% in Q3'17 (from 0.73% Q2'17)² Fig. 2 Benchmark indices – top African Exchanges issuances, buoyed by M&A transac ons, lis ngs by Goods and Industrial sectors – were the most ac vely
and downward trending infla on, was bu ressed by introduc on, rights issues and others, bringing the total traded ETFs.ETF
greater stability in the foreign exchange (FX) market. 145% value of equity issues in 2017 to N408Bn.
Beginning in the first quarter of 2017, the Central Bank of 130%
Nigeria (CBN) implemented a series of monetary policy
ac ons and interven ons to boost liquidity and drive 115% 1.2. NSE Bond Market Review
convergence in the FX market. Newly created market
segments helped ease demand pressures in the parallel 100% The NSE fixed income market recorded mixed
market, resul ng in a gradual reduc on of the market 85% performance. New bond issuances increased over the 272%
spread from a peak of N217 (71.00%)in February to previous year; bond yields gradually moderated from 2016
Equity
N57(18.63%) as at December 2017³. 70% levels amidst easing infla on and greater FX stability. Yields year-on-year market turnover
across various tenors declined between 0.4% – 1.5%and
D J F M A M J J A S O N D growth in ETF trade increased by
Op mism over Nigeria's economic recovery also market turnover declined by 26% in 2017, as investors
BRVM CI Nairobi ASI sought higher returns in alterna ve product classes. volumes 121% to
contributed the MSCI's decision to retain Nigeria in its EGX 30 NSE ASI
Fron er Market Index at its June 2017 Index Review. N1.27Tn
JSE/FTSE ASI
Bond raising ac vity was dominated by the Federal
1.1. NSE Equity Market Review Government of Nigeria (FGN), as it con nued to leverage
The NSE Banking index emerged as the NSE's top the capital market to finance the MTEF and rising fiscal
performing index of 2017. Buoyed by strong corporate NSE Market Capitaliza on Climbs deficits. The year 2017 saw the lis ng of the $1.5Bn FGN
Fig. 3NSE Market Capitaliza on (N) The NSE Banking
earnings reports by the sector's key players, the index Eurobond which was approximately eight (8) mes
posted returns of 73.32%. Coming in a close second with oversubscribed in interna onal capital markets⁴. Other Index emerged NSE’s top
one-year returns of 70.33%, was the NSE Pension index, 2017 pioneer issuances during the year included the: (i) maiden performing index of 2017,
which tracks the performance of the NSE's top 40 2016 5-year, $300Mn FGN Diaspora Bond, (ii) N100Bn FGN pos ng
companies by market capitaliza on and liquidity, in Sukuk bond; and (iii)the record-se ng N10.69bn FGN
accordance with PENCOM guidelines. The Premium Board Green Bond, which is the first Green Bond issued by an 73.32%
con nued to demonstrate the appeal of strong, African Sovereign and the first Climate Bonds Cer fied
transparent listed companies to global investors, closing as Sovereign Bond ever issued. Conversely, the domes c returns
the third best performing index of the year with 51.23% corporate bond market saw a slowdown in ac vity rela ve
returns. The NSE Consumer Goods and Industrial indexes [VALUE]Tn [VALUE]Tn [VALUE]Tn [VALUE]Tn [VALUE]Tn [VALUE]Tn 6.69Bn 4.80Bn to 2016; corporates raised N21.5Bn in three (3) lis ngs in
also delivered strong performances as the FX market 2017, represen ng a 75% decline from N86.1Bn recorded
gained momentum. All other NSE market indices recorded Total Equity Bond ETF in 2016.
posi ve returns except the ASeM, which posted a decline
2017/2018 NSE FACTBOOK of 8.90%. Equity market ac vity skyrocketed from 2016 2017/2018 NSE FACTBOOK

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