January 26, 2015 7.00pm / NASD OTC
The National Association of Security Dealers Over-the-counter (NASD OTC) an alternative trading platform in the capital market, recorded a total market capitalization of N590bl in 2014.
This is contained in a statement reviewing its performance in the preceding year and its strategies and outlook for 2015.
In terms of its structure, NASD OTC made a significant step when it migrated its market trade from the Bi-lateral interdealer trading system (BITS) to the NASDAQ OMX X-Gen platform.
On its trade activity, 120ml shares worth N2.3bl were exchanged in 417 deals by investors from January to December, 2014 an improvement on the 239,165 shares worth N76ml exchanged in 34 deals in 2013.
The Dematerialisation level for the alternative market in 2014, were still low at 2.05bl shares or 2.48%, with prospects that it will increase as shareholders become more aware of the liquidity and safety of dematerialiSation.
Friesland Campina Wamco, Consolidated Breweries, Industrial & General Insurance, Geofluids Plc and BGL Plc emerged the top 5 securities by value, while Industrial & General Insurance, BGL Plc, Geofluids Plc, Food Concepts Plc and Friesland Campina Wamco emerged top 5 securities b.y volume.
From the market analysis 37 out of the 86 participating institutions traded on the NASD OTC market at the end of 2014. The top 5 traders accounted for 62.9% of total market activity, while the top 15 participating institutions accounted for 93.6% of market activity.
Looking at the value added achievements of the OTC market, the following was highlighted; It granted shareholders easy access to trading and depository statement, allowed shareholders the opportunity to use their unlisted shares as collateral for loans, provided access to pre-trading information via CSCS website and fine tuned the electronic account opening process.
The NASD OTC as part of its initiatives for 2015, intends to focus on the introduction of new product lines, increase interactive sessions with market participants, road shows across the nation, build closer relationship with issuers and expand its scope of capital market coverage.
Also the alternative market is anticipating growth and expansion in the following areas; number of securities trading, volume of dematerialised securities, number of participating institutions, turnover volume and value, and product line.
Proshare
