By Peter OBIORA investadvocate

Dec 01 2010 16.00 GMT

Lagos (INVESTADVOCATE)-The Market Control Unit of the Nigerian Stock Exchange (NSE) announced Wednesday December 01 2010, that it has postponed the  extension of Trading hours on its Floor till  Monday 6th December, 2010.

 

This announcement was made at the Floor of the Exchange in Lagos Nigeria. The extended trading hours of 9.30am to 2.30pm was earlier scheduled to commence Wednesday December 01 2010.

 

 

However, no reason has been given for the postponement by the NSE.

 

On Monday November 29 2010, the Capital Market Monitoring Committee (CMC) in Lagos Nigeria approved an increase in trading hours on the Floor of the Exchange (NSE) from 9.30 am to 14.30 pm; making it a total of five hours trading period.

 

This is coming on the heels of recommendations for an increase in the number of trading hours on the floor 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.

 

Stockbrokers had affirmed that there was no need to extend the trading hours on the Floor of Nigeria’s Exchange; because there were no enough equities to trade on in such number of hours; therefore, no need for an extension.

 

One of the Stockbroker name (withheld) affirmed that it was a wrong time to come up with such a policy; because there was no pressure on trading hours due to the insufficient equities available for trading; which would require longer hours to conclude.

 

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.

 

On Tuesday November 23 2010, Ballama Manu, Interim President/Chairman of Council of The Exchange, in his address at the 49^th Annual General Meeting (AGM) of the NSE, affirmed that  consultations were on with Market stakeholders on the need to extend the trading hours at the Nation’s Stock exchange.

On his part, Emmannuel Ikazoboh, Interim Administrator of the NSE, said its Council would try and consider the extension of the trading hours in order to attract more foreign investors to the Nigerian Capital Market (NCM).

He further affirmed that approval for the extension of trading hours at the Exchange was a right step in the right direction, “it is a strategic move by the leadership of the NSE towards repositioning in order to take the Nigeria’s Exchange to greater heights.