By Udeme Ekwere

Tuesday, 11 Jan 2011

The Nigerian Stock Exchange has said that it will ensure that market operators and stakeholders adhere strictly with all the existing rules of the Exchange in 2011.

The Interim Administrator of the NSE, Mr. Emmanuel Ikazobor, said this during a review of the market performance in 2010 and the outlook for 2011.

According to him, this is in line with the aim of Exchange to run a capital market that will rank among the best globally.

He said, ”We intend to ensure strict enforcement and compliance with the rules and regulations regarding operations in the market. Last year, 74 dealing companies were suspended for failure to submit audited accounts for 2008-2010 accounting years, 42 companies were placed on technical suspension, 15 companies had full suspension, and seven companies were recommended for delisting.”

He also said that the council of the stock exchange had approved the adoption of a new trading platform, adding that this would help deepen activities as well as attract the much needed foreign investment into the capital market.

He added that the extension of daily trading hours by two hours had benefitted the exchange in that there was a significant increase in the number of deals and overall participation by foreign investors.

Ikazobor said, ”In the last one month after we decided to extend the trading hours, there was a five per cent increase in the number of deals, traded volume increased by 15.6 per cent, while value traded went up by 24 per cent. This justifies the need to continue in the extended trading hours as more foreign investors have been attracted to the market.

”Also, we will push for full dematerialisation and the introduction of market makers into the market this year, we have been meeting with the Securities and Exchange Commission to deliberate on these issues, and before long, we will come up with more information.”

According to Ikazobor, the NSE‘s objective for 2011 will be to operate an efficient and transparent business to promote market integrity, as well as ensure the market development of various products.

He noted that other issues that would demand the attention of the council and management included how to broaden and deepen the market both in terms of tradable asset class on its platform and participants in the market.

Another issue, according to him, is licensing of designated advisers who will anchor the operations of the soon to be inaugurated Alternative Securities Market/Private Placement Exchange.

 

Source: Punch