By Peter OBIORA investadvocate

Nov 29 2010 16.00 GMT

Lagos (INVESTADVOCATE)-The Capital Market Monitoring Committee (CMC) has today in Lagos Nigeria approved an increase in trading hours on the Floor of the Nigerian Stock Exchange (NSE) from 9.30 am to 14.30 pm; making it a total of five hour trading period.

 

This is coming on the heels of recommendations for an increase in the number of trading hours on the floors of the NSE by the Securities and Exchange Commission (SEC) and the Stock Exchange.

 

Prior to this time, the Nigeria’s Exchange trading hour was between 9.30 am to 12.30 pm a period of only three hours.

 

Following this development, investadvocate sought the reaction of Stockbrokers who are of the view that the Nigerian Stock Exchange does not have enough equities to call for an increase in trading hours on the Floor of the Nigeria’s Exchange.

 

A Stockbroker name (withheld) affirmed that it was a wrong timing; because there was no pressure on trading hours due to the insufficient equities available for trading; which would require longer hours to conclude.

 

“When you are trading remotely, you can do so much from your office, but in terms of multiple trading, you can have up to five trading booths that would enable you do enough transaction within the stipulated time” the Brokers said.

 

Another Stockbroker who spoke to investadvocate on the condition of anonymity had the same view with the first Broker on the issue of insufficient equities to bring about an increase in trading hours on the Nigerian Exchange.

 

Also the Broker was of the view that the SEC and NSE were trying to align our trading hours with that of the International Market.

 

“At the international market, Traders abroad have enough equities to trade on; unlike what is obtainable in Nigeria” he said.

 

A look at other International Stock Exchanges; shows that trading hours are longer than what we currently have at the NSE. Most of them have up to an estimated seven trading hours.

 

The New York Stock Exchange’s (NYSE’s) regular trading hour are 9.30 am to 16.00 pm indicating over six hours of trading period.

 

While the London Stock Exchange (LSE) normal trading sessions are from 08:00 to 16:30 every day of the week except Saturdays, Sundays and holidays declared by the Exchange in advance. The LSE uses an estimated eight hours 30 minutes (8.5 hours) for trading.

 

For the Jakarta Stock Exchange (JSE) trading hours are broken into two sessions. The morning sessions last from 9:30am-12:00pm Monday-Thursday, and 9:30 am-11:30 am on Friday. Afternoon trading begins at 1:30 pm-4:00 pm Monday-Thursday, and 2:00pm-4:00pm Friday.

 

This shows approximately 2.5 hours in each session trading session; with a total of five hours trading period.

 

While the Tokyo Stock Exchange (TSE) one of the largest Stock Exchanges in the world, trading hours are from 9.00 am to 11.00 am and 12.30 pm to 3.00 pm; showing over four hours of trading period.