Exchange posts N8.30bn gross earnings as 34 new securities debut
by Teliat Sule
June 10, 2018 | 12:00 pm| | | Start Conversation
… Optimism rises as equities gain N672bn in a week
The Nigerian Stock Exchange has announced N8.30 billion total income for the full year 2017 as against N4.46 billion made same period in 2016. Transaction and listing fees accounted for most of the revenue generated in last year.
Transaction fees rose by 130 percent from N1.63 billion in 2016 to N3.76 billion in 2017, and thus accounted for 45 percent of the group’s total income. Similarly, listing fees increased by 111 percent during the reference periods from N813.06 million to N1.71 billion and thus accounted for 21 percent of the total income generated last year. Thus, 66 percent of the revenue earned by the nation’s bourse in 2017 came from both the transaction and listing fees. This compares with 55 percent which was their weight in NSE’s total revenue in 2016.
Furthermore, the Exchange recorded 42 percent growth in market capitalisation just as it listed 34 additional securities to raise its total listed securities to 312 in 2017. In addition, the NSE trained 1,279 individuals through its X-Academy, recorded 57,600 participants in its literacy programs as well as boosted the market turnover by 120 percent.
“The financial performance of the NSE bears testament to the vastly improved operating environment of 2017. Total income to the Group amounted to N8.30Bn, up 86% from 2016. This was mainly driven by rejuvenation in trading activity following the introduction of the market-based foreign exchange regime in April 2017. Buoyed by improved ease of market entry and exit for foreign portfolio investors, transaction fees jumped 130% year-on-year to N3.6Bn, accounting for 45% of the Group’s total income in 2017”, Oscar Onyema, NSE’s CEO said.
In 2017, the launch of the FGN Savings Bond in conjunction of the DMO/FGN enhanced the Exchange’s value proposition. This was supported by joint mutual fund trading platform with FMAN, completed draft rules, product specifications, pricing framework and liquidity enhancement frameworks for the maiden derivative product, held 175 financial literacy programs just as it paid N6.40 million for 17 claims in 2017.
Furthermore, the group’s total assets rose by 17 percent from N22.79 billion in 2016 to N26.69 billion in 2017. Group’s total equity hit N23.13 billion, up 19.3 percent from N19.39 billion in 2016. However, the number of persons employed by the NSE fell by 10 percent from 266 individuals in 2016 down to 239 persons in 2017, although the wages and salaries of employees increased by 10 from N2.44 billion in 2016 to N2.67 billion in 2017.
Meanwhile, the equity market has returned to the positive territory. The market capitalisation closed last Friday at N14 trillion compared with N13.34 trillion last week, meaning that rising optimism caused the value of equities to increase by additional N672 billion in just a week. The All Share Index (ASI) closed at 38,669.23 basis points as against 36,816.29 basis points in the previous week, translating to a year to date returns of 1.11 percent as against -3.73 on June 1.
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