Trading session at NSE
Stockbrokers, who are dealing members of the Nigerian Stock Exchange (NSE) expressed delight last Friday, for regaining their seats on the council of the exchange.
The brokers, who spoke at the 51st Annual General Meeting (AGM) of the exchange in Lagos, said they were happy that dealing firms were now major members of the council of the exchange unlike the recent past when non-dealing members were co-opted to the council, thereby taking control of the market.
The Securities and Exchange Commission (SEC) had appointed some individuals to the council, a move it said, was in the interest of the public- when the commission intervened at the NSE in 2010. The individuals were seven in number and stockbrokers had kicked against the move.
However, the seven members, have left the council and were not present at the AGM. The President of the NSE, Alhaji Aliko Dangote confirmed the exit of the individuals, saying “those individuals appointed by SEC in public interest have disengaged from the council.”
Reviewing the activities of the exchange in 2011, Dangote said the exchange identified eight key initiatives to be delivered near-term, all aimed at addressing the two major issues that the capital market continues to grapple- lack of investor confidence and lack of liquidity and depth in the market.
According to him, the initiatives include: market segmentation; introduction of Exchange Traded Funds(ETFs); revised share buy-back policy; investor clinics, new website; introduction of market making; introduction of securities lending and revised listing requirements.
“In November 1, 2011, the NSE rebranded the exchange's markets and boards, and consolidated 33 industry sectors into 12 sectors that better reflect the Nigerian economy, and are better aligned with international industrial classifications.
Market capitalisation and growth/income classifications of stocks were simultaneously implemented to increase understanding of listed companies, and to provide input. To close out the year on a high note, the first ETF, the ABSA
NewGold ETF, was launched in December, providing investors direct access to an efficient and cost-effective way to invest in gold, and an opportunity to hedge currency,” he said.