Oscar Onyema, Chief Executive Officer of the Nigerian Stock Exchange (NSE) has said there are prospects for investors in the capital market in 2013.
Though he said the market will continue to face challenges around liquidity and depth in the course of the year, investor confidence will continue to grow due to developments both in the government and private circle to drive up the market.
A major factor expected to drive growth in the market in 2013 is plan by government to abolish Value Added Tax (VAT) as well as stamp duties which is expected to free more money for investment in the capital. Onyema was optimistic that the federal government will soon put a final seal on the plan for the capital market to implement.
Apart from removing multiple taxes on transactions in the capital market, the NSE boss noted that plan by government to invest proceeds of the Sovereign Wealth Fund (SWF) starting from March will further move the market up.
Besides, the NSE, according to Onyema will not relent in its efforts to continue to develop products for investment. It would be recalled that the NSE recently launched a platform for secondary bond market trading and also introduced new indices and Exchange Traded Funds (ETFs) in 2012.
Onyema who addressed a World Press Conference today in the premises of the NSE said total market capitalization grew by 43.97 per cent from N10.28 trillion in 2011 to N14.80 trillion as at the last day of trading in 2012.