THEME: MARKET RECOVERY, INNOVATION AND REGULATION IN NIGERIA
Situating the discourse: Problem statements
1. What options are available to investors on the Nigerian capital markets seeking to diversify their portfolios?
2. How have these various options fared in terms of returns against alternatives and how can performances be explained?
3. How can the lukewarm investor interest towards the Nigerian stock market be explained despite positive corporate earnings?
4. What happened to IPOs and what needs to happen for IPOs on the Nigerian Stock Exchange to kickstart again?
5. Which options are available to issuers seeking to capital at the lowest financing cost, and what explains the mismatch between the various domestic capital markets?
6. What explains the rise of short-term financing preferences for issuers? Is the risk correctly priced?
7. What impact could recent innovations like credit guarantees, and securitizations have on the capital markets?
8. How is corporate governance faring at Nigerian companies?
9. How much real power do regulators have to enforce strict compliance to corporate governance codes, and punish infractions?
10. How are boards retooling to meet the raised expectations of the FRCN Code of Corporate Governance 2018?
To seek answers to these and related questions, BusinessDay, a foremost business news and economic intelligence publisher in Nigeria, will be hosting the 2019 Investments and Capital Markets Conference.
The organizer expects that the conference will gather financial market regulators, senior industry leaders, retail and institutional international investors, traders, investment bankers, economists, the financial media and other market participants to chart the way forward for the development of a deeper, diversified and more resilient Nigerian capital market.
Distaste for risk and lacklustre returns mark the NSE Historically, frontier markets have experienced greater volatility than their developed and emerging market peers. The heavy dependence of these economies on commodities exports exposes their economies to the vagaries of international demand based on growth at the centre. This is further worsened by their relative illiquidity of their financial market, which can experience a drastic squeeze in the event of a global crisis.
Samuel Vecht, a portfolio manager who heads the Frontiers team within the Fundamental Active Equity division at BlackRock’s Active Equities Group, captured it succinctly: “Understanding the economic and business cycles of the underlying countries is a crucial part of the stock selection process, and is especially important given the low levels of liquidity in frontier markets, which can fall further when the economy worsens.”