By Peter OBIORA investadvocate

Nov 23 2010 17.22 GMT

Lagos (INVESTADVOCATE)-The Council of The Nigerian Stock Exchange (NSE) has considered and approved a total of 27 applications for the issuance of 69.24 billion shares valued at N2.4 trillion in year 2010, compared with 30 applications for the issuance of 83.9 billion shares valued at N279.25 billion recorded in year 2009.

Ballama Manu, Interim President/ Council Chairman of the NSE made this affirmation in his welcome address at The Exchange’s 49^th Annual General meeting (AGM) held Tuesday 23 November 2010 in Lagos Nigeria and made available to investadvocate.

Manu affirmed that out the number of issues approved this year, 12 applications valued at N2.3 Trillion have been concluded, including two applications for listing by introduction valued at N14.3 billion.

“We have raised the bar in the Primary Market through the approval of the largest single listing of N2.09 Trillion in favour of Dangote Cement Plc (DANGCEM). Hitherto, the largest single approval was a hybrid offer of N301 billion by Union Bank of Nigeria Plc (UBN) in year 2008” he said.

 

Manu further affirmed that the surge in Bond Issues-both Corporate and Government; which started in year 2009 continued during year 2010. “This year, Council has approved Bonds totaling N126.7 billion in six years’ applications. Also, the Debt Management Office (DMO) and Central Bank of Nigeria (CBN) has remained active in the issuance of FG Bonds; with tenor as long as 20 years, thus improving the depth of the Bond Market” The Interim President said.

 

He further affirmed that simultaneously, there has been an upswing in Bond Investments attributed to the reduction in credit facilities to the Private Sector. “Total FGN Bonds traded through Over the Counter (OTC) Market between January and October year 2010 was 12.5 billion units; worth N14.2 Trillion” he said.

 

Manu said that it was a good thing that the Primary Market which recorded decline in activity in year 2009 has started to regain momentum. “This showed that the various confidence building measures instituted by Council have started to stabilise the Market” the President affirmed.

 

On the future outlook, he said that for the Exchange to be taken as a Global Player, it must work by the rules and ensure strict adherence as obtained in other climes. “The various confidence building measures instituted by Council have started to stabilise the Market” he said.

 

Manu also said he was glad to affirm that the outlook for the rest of this year was bright especially with the commencement of operations of the Asset Management Company (AMCON) and the ongoing reforms in the financial sector, “the Council is watching the situation closely with a view to formulating an appropriate policy response that would enable the market make the most of the emerging business opportunities” he said.

 

According to him, the increase in the Monetary Policy Rate (MPR) should encourage more companies to seek funds from the Stock Market; adding to the mix of investment instruments and deepening our market.

 

He further affirmed that there were ongoing consultations with stakeholders on the possibility of extending the trading hours by two hours daily from 9.30am to 2.30pm from the current trading time of 9.30am to 12.30pm. “The extension of the trading time became necessary in order to guarantee integration with other African exchanges” Manu said.

 

“Also, we are considering new initiatives on the limits to daily share price movements. Currently, there is a maximum capping of 5% on individual stock movements, which is affecting market liquidity. We hope to seek the approval of the Securities and Exchange Commission (SEC) after Council has considered the opinions of stakeholders on the new initiatives” he affirmed.