Perspectives of The Capital Market on Nigeria’s Growth

Culled—Proshare

February 13, 2017/NASD Plc

In recognition of the pronounced effect the Federal Government Budget has on Nigeria’s rate of growth and the effectiveness of the capital market in supporting such growth; Capital market operators conferenced  to review the implications of the 2017 Budget.

Inconsistencies in Nigeria are the FX regimes and slightly reactionary monetary and fiscal policies were identified as major drawbacks to the countrys ability to attract foreign capital and private sector growth. Continually rising interest rates (on the back of FG borrowing) was also seen to crowd out what little funding that could have been available for SME sector growth.

The conference that was organized by the Apex regulator of the Capital market (Securities and Exchange Commission) concluded with some themes that have been in close focus for NASD.

  • Ease of doing business and transparency were identified as critical to attracting enterprise;
  • Privatisation of State owned enterprises would marginally increase the federal treasury but also more importantly broaden investment options and deepen the market;
  • Improving financial literacy of investors and lawmakers would create a more enlightened user group (improving the quality of decisions made).

At NASD we believe that improving transparency, literacy and structure will allow the capital market play an increasingly important role in the sustainable economic recovery of Nigeria.

Good Companies in Good Company on NASD 
Companies that communicate better with their shareholders are likely to experience better liquidity (hence happier investors) in their shares.

A review of securities admitted to trade on NASD OTC securities exchange indicates that 19 of 32 issuers whose shares have been admitted to trade on the platform held Annual General Meetings [AGM] in 2016.  See list below.  11 of these 19 accounted for 98% of deals executed on the platform by value (96% by deal count).

8 Issuers who did not hold AGMs in 2016 accounted for less than 2% of total transactions on the market.

At NASD we believe corporate interaction and good investor relations is a critical key to investors unlocking the true value of their investment.  By the end of Q1 2017, we therefore shall commence categorization of securities into Blue and Pink (and default) tiers to reflect the quality and age of information available on each security.  Ultimately ensuring that good companies are kept in good company.

Issuers on NASD OTC who held AGM’s in 2016 are:

Corporate Information
Notice is hereby given that the Nineteenth (19th) Annual General Meeting of the members of TRUSTBOND MORTGAGE BANK PLC. will hold on Tuesday, February 28, 2017 at the Peninsula Hotel, Block 94, Plot 16, Providence Street, Lekki Scheme 1, Lagos at 10:00 am

Unlisted Securities Index
As at Friday, 10 February 2017, the index closed at 594.31 points (down 4.39% on previous close of 621.63 points).

Market in Numbers (YTD – 10 February, 2017)

Macro-Economic Indicators – 10 February, 2017

Closing Prices as at 10 February, 2017

 

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