The Nigerian Capital Market Report 2020 Leveraging A Crisis: The Nigerian Capital Market in 2020 January 2021 1602 - 8842 Vol. 1 No. 254 Partnership Publication Partner Conceptualisation Content Compliance Creatives 0700-PROSHARE +2349024075284
[email protected] www.proshareng.com @proshare ProshareNG ProshareNigeria Proshareng Proshare Ng Contents Executive Summary 2 s Equities Market Review 6 Fixed Income Market Review 80 Other Asset Classes 83 Regulatory Governance 96 Technology & The Capital Market 112 Capital Market Publications in 2020 115 Related News/Links 117 Advice to Users of This Report ent 123 Contacts / Other Reports By Proshare 124 Cont The Nigerian Capital Market Report 2020 Executive Summary “Rule number one: Don't lose money. Rule number two: Don't forget rule number one.” Warren Buffett Economies globally in 2020 were caught in the centre of a vortex of problems ranging from economic lockdowns to supply chain disruptions, oil price disturbances, and healthcare instabilities necessitating furloughs, salary cuts, and layoffs. All these events had differential impacts on markets ranging from equities to fixed income securities, commodities, and hybrid market instruments. Indeed, for Nigeria, the capital market saw fixed income yields flatten as investors piled into the market to avoid losses in equities but by Q2 2020 the fixed income market unraveled as yields started tumbling to below 1% per annum. To make matters worse, domestic inflation rate climbed steadily thereby eviscerating real domestic returns on investment. As things would have it, the global markets for metals equally stalled as grains and other commodities felt the brunt of disrupted travels and supply chain networks. The commodities market became 'choppy' along with a declining trend until Q4 2020 when markets started to look up with hopes of a faster-than- expected recovery and the announcements of vaccines to combat the COVID-19 virus.