January 27, 2011

Facts behind the placing of 2,500,618,928 Ordinary Shares 50 kobo each of  Wema Bank plc

 

The Nigerian Stock Exchange’s Interim Administrator, MR. Emmanuel Ikazoboh’s Welcome Remark

 

•  Am glad to report that the two-hour extension to the trading hours is already having positive impact on our market. You will recall that on December 6, 2010, we began to trade from 9.30 to 2.30 pm as against 9.30 to 12.30 pm. The market has been recording growth in value, volume and number of deals since

then.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

 

•  Trading statistics shows that from November 6 to December 5, 2010, which is the month prior the extension, the value of market transactions was N54.44 billion, while the statistics for December 6, 2010 to January 5, 2011 which was the first full month of the extension, The Exchange recorded N67.94 billion. This represents a growth of 24.80 per cent.

 

•  It is equally important to note that December 27 and 28, 2010 were declared public holidays by Federal Government for Christmas and Boxing Day. Also, January 3, 2011 was declared New Year public holiday. There were no transactions these days.

 

In addition, the two-hour extension to the trading hours was not observed on December 24 and 31, 2010 as the market closed at 12.30 both days.

 

• If there were transactions in the three days declared as public holidays and the market had the full complement of the two-hour extension on December 24 and 31, the market would probably have witnessed a higher volume, value as well as increased deals in the one-month period.

 

• Further analysis reveals that market transactions from 9.30 am to 12.30 pm in the first month of the extension was N33.94 billion, the value of shares traded between 12.30pm and 2.30 pm was N34.00 billion. This shows that the two-hour extension accounted for 50.04 per cent of the value of the transactions done in the first month of the extension.

 

• In the month preceding the extension; the market had 108,228 deals, while deals totaling 113,342 were recorded in the first month of the extension. This represents a growth 4.73 per cent. 

 

• The volume recorded before the extension was 6.459 billion, the figure came to 7.463 after the extension, representing an increase of 15.55 per cent. 

 

• It was reported on Monday this week that The NSE topped global Indices with 11 per cent gain in the first month of this year. This is attributed to the return of investor confidence to our market.

 

• I use this occasion to appeal to those investors who are yet to return to the market that the time to do so is now.

 

• I congratulate the Board and Management of Wema Bank Plc for their efforts at repositioning the bank for better performance.  

 

NSE