The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr Oscar Onyema, has reiterated that, considering the lofty fiscal reforms being put in place by the Federal Government, the exchange will rely more on them for growth.He said the deregulation of the downstream subsector by the government, which was expected to transform the economy in terms of growth and development, would definitely trickle into the capital market, when the Petroleum Industrial Bill (PIB) was finally passed into law.Onyema, who made this disclosure on Monday, at a world press conference while appraising the market community on the performance of the market in 2011, noted that the NSE would engage in more reforms to take advantage of the government's reforms and policy drive.Onyema explained that, although the crisis in the Euro zone would affect major economies around the globe, 'it provides concern for us at the capital market. It will,however, provide growth opportunity for Africa and other emerging markets.'The NSE CEO, who said that no new product would be introduced in the New Year, said activities in the market would be geared towards developing the already existing products to create asset depth in the operation of the exchange.'As we move forward in rolling our market structure, we would continue to give more information and develop our bond market and make other market structure changes that will enhance liquidity and deepen the market base.'We will engage in value added service programme (corporate advocacy), that would possibly impact positively on the market growth. We are doing things optimizing resources and making sure that all expense is embarked on benefit. We are looking at the intrinsic and extrinsic cost and value chain to benmark our sales with other exchanges around the globe', he addedSpeaking further on the outlook of the market in the year, Onyema said the capital market is expected to enjoy some level of growth at the end of the trading year.On the key initiatives for 2012, Onyema said all operators in the market will be made to comply with the minimum operational standard required of the market; automation of financial reporting process towards driving the market; beefing surveillance structure to cub infractions to the barest minimum.Continuing, he said the demutualisation of the exchange is still on going as the committee set up on the issue is working on their final draft, towards submitting a proper guideline on demutualisation to the Securities and Exchange Commission (SEC).On the debt overhang arising from margin debt, he said they are collaborating with the Asset Management Corporation of Nigeria (AMCON), which took over the bad loans, with the view to agreeing on forbearance in conjunction with the Central Bank of Nigeria owed by the operators and investors in the market.It would be recalled that margin loans in the stock market as at 2008 was estimated at over N400 billion. Appraising the market in 2011, Onyema disclose that the market recorded a loss of 17 per cent as shown by major performance indicators.According to him, the market struggle greatly last year, wherein there was volatility in transaction due to the 70 per cent ownership of equities in market by foreign investors who sold their holdings to fill the gap of the investment in the international market.
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