By IHEANYI NWACHUKWU

The Securities & Exchange Commission (SEC) said it will initiate discussion for the privatisation of the Abuja Securities and Commodities Exchange (ASCE).

The Abuja Securities & Commodity Exchange was originally incorporated as a Stock Exchange on June 17, 1998. It commenced electronic trading in securities in May 2001 and was converted to a commodity Exchange on August 8, 2001 and brought under the supervision of the Federal Ministry of Commerce.

SEC in its recently released quarter-four 2010 report made available to BusinessDay said that it will intensify collaboration with the Bureau of Public Enterprises (BPE) on the privatisation of government owned enterprises.

According to SEC, it will step up its investor education and publicity as these will boost investor confidence and result in increased market activities.

“In 2011, there are strong indications for the commencement of dematerialisation and demutualisation programmes of the NSE and the introduction of alternative trading platform. The SEC will deepen the market by encouraging other companies for listing,” SEC stated.

BusinessDay gathered from the commission’s report that there is every reason to be optimistic that the Nigerian capital market will record improved performance in 2011, “given the series of banking and capital market reforms in 2010 and the renewed drive by the commission on investor education, with the objective of investor protection and restoration of investor confidence.”

SEC stated: “Asset Management Corporation of Nigeria (AMCON) activities would hopefully impact positively on the capital market and the economy.

There is hope for growth in the capital market considering the fact that Nigeria’s proposed 2011 budget of N4.22 trillion is based on Nigeria’s Vision 20:2020’s First National Implementation Plan. President Goodluck Jonathan, during his presentation of the 2011 budget proposal, noted that the objectives of the budget would include fostering job creation and optimised capital spending by rationalising recurrent expenditure and maximising government revenue.”

Source: Businessday