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Investor Presentaiton

CHAIRMAN'S MESSAGE I hereby present to you the 2013 Annual Report and Accounts of the Commission. In keeping with the mandate of the newly inaugurated Board of the Commission to drive market growth through innovation, financial inclusion and effectiveness, 2013 proved to be a year of immense improvement and development in the Nigerian capital market. Domestic participation in the stock market improved favourably in 2013 due to on-going reforms and initiatives which affected market indices positively, as the All Share Index showed sustained growth throughout 2013. It experienced a major downside in June and August and declined by 4.31% and 4.39% respectively, owing partly to the remark of Ben Bernanke, Chairman of the US Federal Reserve Board about a potential beginning of the end of the Federal Reserve Board's quantitative easing. However, the All Share Index rallied and as at December 2013, stood at 39,562.75 points, indicating an appreciation of 40.90% year to date, exceeding the 35.45% appreciation recorded in 2012. In addition, total market capitalization closed at N18.60 trillion from N14.80 trillion in 2012, indicating an appreciation of 25.68% and an upsurge in market activity and market confidence. In contrast to the position in 2012, transactions on the Exchange also improved tremendously as turnover value stood at about N1.01 trillion from the sale of over 104.20 billion securities in about 1.40 million deals. The trading value, volume of securities traded and number of deals appreciated in 2013 by 53.61%, 16.85% and 39.98% respectively. with In pressing forward its Anti-Money Laundering/Combating Financial Terrorism agenda, the Commission inaugurated the Committee of Chief Compliance Officers of Capital Market Operators in Nigeria (CCCOCIN) to strengthen the AML/CFT regime and facilitate greater compliance by the market operators. The Commission's significant progress in improving its AML/CFT regime through enhanced supervision, established legal and regulatory framework and participation in AML/CFT compliance review sessions by regional group for Africa and the Middle East preceded the removal of Nigeria by the Financial Action Task Force from the list of high-risk jurisdictions. In addition, the Commission has amended and gazetted the “AML/CFT REGULATION FOR CAPITAL MARKET OPERATORS 2013" to conform with the amendments made by the National Assembly to the principal Acts (MONEY LAUNDERING PROHIBITION) ACT 2011 (as amended); AND TERRORISM (PREVENTION) ACT 2011 (as amended). The proliferation of wonder banks/ponzi schemes in our market has been a continuous challenge to the Commission as victims of this malfeasance have been the investing Annual Report and Accounts 2013 - Securities & Exchange Commission 9
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