By Peter Egwuatu
The Nigerian Stock Ex change (NSE) has restated its commitment to operate good corporate governance in line with global best practices.
Director General of the NSE, Professor Ndi Okereke Onyiuke said the Exchange shall continue to operate corporate governance that is in line with global best practice, noting that patriotic Nigerians, under the aegis of Association of Nigerian Physicians in the Americas (ANPA) has demonstrated high level of confidence in the Nigeriaâ€™s capital market given their investment profile on the NSE.
According to her, â€œ The NSE has always partnered with ANPA in our international road shows. This collaboration has raised the bar for our international outings in terms of high level of participation of foreign investors and quality of enquiriesâ€
Speaking to the capital market stakeholders at the ANPAâ€™s first convention in Nigeria recently, Onyuike stated that the countryâ€™s stock market experienced a prolonged bearish trend which was a fallout of the global market downturn, adding that it was expected because the market was no longer cocooned from the global world
According to her, â€œ We are fully internationalized. Also the market has embarked on the steady path to recovery and our brothers and sisters from diaspora are supposed to take advantage of this rebound. At the peak of what has been tagged meltdown globally, our market lost about 40 per cent of its value as the total market capitalisation declined from N12 trillion in 2008 to N7.14 trillion. in March this year.â€
She declared that most of the investors that suffered losses only lost in terms of value as their holdings were still intact, stressing that even those who lost outrightlyÂ had earlier made huge profits in form of capital appreciation, dividend and bonuses.
According to her, â€œ As investor confidence begins to rise, our total market capitalization is equally rising. It appreciated from N7.14 trillion to N9.45 trillion between April and May 2009. At the moment it is hovering above N8M trillion as many our investors are taking profit regularly following market dynamism. Our market is resilient. and we did not apply any stimulus.â€
Onyiuke, informed the gathering that the Nigeriaâ€™s stock market fundamentals had consistently remained strong as adjudged by the strong corporate earnings, dividend payout, bonuses etc from the quoted companies
To this extent ,she noted that until the market downturn, the market had always outperformed many developed markets in the area of Return on Investment (ROI) in Dollar terms as adjudged by international rating agency.
The NSE boss remarked that the market downturn had all the same created good opportunity for people to buy shares since most of the shares are selling below intrinsic value, thus making it attractive to local and foreign investors to begin to invest in the companies.