The Nation Newspaper

Category: Equities

  • Akintola Williams urges stock exchange to sustain integrity

    Akintola Williams urges stock exchange to sustain integrity

    The only surviving founding father of the Nigerian Stock Exchange (NSE) and the Doyen of the Accountancy, Mr. Akintola Williams, has urged stakeholders at the stock exchange to sustain the high degree of integrity on which the stock market was founded.

    Williams, now 95, together with six other eminent Nigerians, had in 1960 signed on the documents that birthed the then Lagos Stock Exchange (LSE), which later changed its name to Nigerian Stock Exchange (NSE).

    Speaking at a ceremonious ringing of closing bell for the NSE at the weekend, Williams noted that when the Exchange was founded and all through its formative years, frauds and manipulations were unknown at the stock market. The event was held to mark the 95th birthday anniversary of Williams, who clocked 95 on August 9.

    According to him, the stock market was founded on a high degree of integrity, which must be sustained in order to guarantee the sanctity of the market.

    “I shall remain eternally proud for being one of the seven founding fathers of the Lagos Stock Exchange late in 1960 subsequently renamed Nigerian Stock Exchange. I was a council member for thirteen years and was pleased to have worked under five Presidents of Council, two of whom were expatriates whilst the rest were Nigerians. I am happy to report that during this period of thirteen years and subsequently thereafter frauds and manipulations of prices were unknown and I note with considerable pleasure that this high degree of integrity is still going on. I plead that it should still be maintained and not relaxed,” Williams said.

    He also noted the need for stockbrokers “to become professionals”, in reference to campaign by stakeholders that stockbrokers should be allowed to trade on their own names as professionals just as lawyers and accountants.

    Williams said such professional status for stockbrokers will supplement the very high standard of professional ethics on which it already insists.

    He commended the phenomenal changes at the NSE pointing out that the Exchange has established 11 well-equipped branches with trading floors in 11 states.

    “I also notice that your call-over is now being superseded by the introduction of computer-based system – here again I rejoice with the Exchange on this achievement. The Exchange also needs to be congratulated on the substantial increase in the number of its dealing members. The number now exceeds 200,” Williams noted.

    Established as Lagos Stock Exchange (LSE) in 1960, the stock exchange was conceptualized as a limited by guarantee not-for-profit organisation thriving on the goodwill, reputation and integrity of its members. While Nigeria’s doyen of accounting, Mr. Akintola William, is the only surviving initial signatory to the founding memorandum of the NSE, the membership list of the NSE has always included “the movers and shakers” of the Nigerian economy. Late Chief Moshood Kashimawo Olawale Abiola (MKO) was a former president of the NSE.

    Beside stockbroking firms and other capital market operators that are dealing members, members of the NSE included Alhaji Aminu Dantata, Alhaji Aliko Dangote, Alhaji Abdul Rasaq (SAN), Chief Ernest Shonekan, Chief Jerome Udoji, Chief Chris Ogunbanjo, Chief Bayo Kuku, Dr. Lateef Adegbite, Dr, Chris Abebe, Mr. Gamaliel Onosode, Mr. Isaiah Balat, Alhaji Isyaku Umar, Mr. Oba Otudeko, Otunba Adekunle Ojora, Mr. Pascal Dozie, Mr. Paul Ogwuma, Chief Phillip Asiodu,  Rear Admiral Allison Madueke (rtd.), Senator Udo Udoma and Senator David Dafinone among others.

    Several State Investment Companies are also institutional members of the NSE, giving the States inputs into the operations of the NSE. These included Adamawa Securities Limited, Kaduna Investment Company, Kano State Investment and Properties Limited, Katsina State Investment and Property Development Company Limited, Kwara State Investment Corporation, New Nigerian Development Company Limited, Niger State Development Company Limited, Sokoto Investment Company Limited and Yobe Investment Company Limited among others.

     

  • Nigerian equities lose N123b as investors stake N53b

    Nigerian equities lose N123b as investors stake N53b

    Nigerian equities lost N123 billion in the first week of September, sustaining a downtrend that characterized the last two months.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) declined from its week’s opening value of N13.714 trillion to close the week at N13.591 trillion, representing a loss of N123 billion.

    The composite index, the All Share Index (ASI), which tracks prices of all quoted equities, declined week-on-week from 41,532.31 points to close at 41,160.62 points, representing an average decline of 0.89 per cent.

    Quoted equities had lost N186 billion in August, N58 billion more than N128 billion lost in July. Average loss in August stood at 1.34 per cent compared with average loss of 0.91 per cent recorded in July.

    The bearishness last week dragged the stock market to the negative with average year-to-date return of -0.41 per cent. Twenty eight equities appreciated as against 54 equities that depreciated.

    Total turnover last week stood at 3.28 billion shares worth N52.81 billion in 25,592 deals as against a total of 1.34 billion shares valued at N16.09 billion that were traded in 22,481 deals in the previous week.

    The financial services sector was the most active with 2.74 billion shares valued at N41.89 billion traded in 13,170 deals; representing 83.6 per cent of the total equity turnover volume. Conglomerates sector followed with a turnover of 239.06 million shares worth 1.85 billion in 2,886 deals. Oil and gas sector placed third with a turnover of 98.22 million shares worth N1.598 billion in 2,997 deals.

    The trio of Ecobank Transnational Incorporated Plc, Transnational Corporation of Nigeria Plc and Fidelity Bank Plc were the most active with 2.25 billion shares worth N37.82 billion in 3,400 deals, contributing 68.7 per cent to the total equity turnover volume.

    Also traded during the week were a total of 112,216 units of Exchange Traded Products (ETPs) valued at N2.475 million executed in 18 deals compared with a total of 40,845 units valued at N1.15 million traded in 21 deals penultimate week.

     

  • New core investor bids for majority stake in MTI

    Directors of Mass Telecommunication Innovation (MTI) Plc and a new core investor have opened exploratory talks on possible acquisition of the majority equity stake in the telecommunication infrastructure company.

    On the heels of exclusive report yesterday by The Nation on the ongoing restructuring at MTI, a reliable market source in the know of the talks said the new core investor and directors of MTI have met to initiate discussions on the potential acquisition.

    According to the source, the new core investor has indicated interest in acquiring majority equity stake of some 51 per cent in MTI.

    The new core investor was said to have been impressed by the ongoing restructuring at the telecommunication company.

    This initial expression of interest by a new core investor came on the heels of unsuccessful attempt by Tingo Mobile, a Nigerian mobile phone manufacturer, to launch acquisition bid for similar majority stake of 51 per cent in MTI.

    Chief executive officer, Tingo Mobile, Dozy Mmobuozi, had said Tingo will acquire 51 per cent of MTI for about N4 billion to develop rural broadband in Nigeria.

    According to him, MTI will be rebranded and remain listed on the NSE.

    “We’re using the acquisition to reach out to the mass market,” Mmobuozi said. Lagos-based MTI’s “assets from base stations to license and goodwill and other things, will help penetrate rural Nigeria.”

    However, a source close to the company said the Tingo’s bid was inconclusive and MTI is looking up to the new core investor for a potential deal.

    The Nation had reported yesterday that MTI and four other companies had filed in for restructuring exercise at the Nigerian Stock Exchange (NSE), a process that might see significant changes in the operating, governance and shareholding structures.

  • Investors stake $9bn on emerging market stocks, bonds

    Investors stake $9bn on emerging market stocks, bonds

    Emerging markets took in only $9 billion in stock and bond investments in August, below the average for the past three months and lackluster even compared to prior Augusts, a global financial industry group has said.

    Inflows into debt markets were particularly low, and bond issuance fell by half compared to the same month last year, the Institute of International Finance, or IIF, said in its monthly report on portfolio investments into emerging markets.

    “While the usual seasonal lull surely contributed to the weakness, the sharp slowdown in portfolio flows in August could also mark the beginning of a period of greater caution among global investors towards -emerging markets,” Charles Collyns, the IIF’s chief economist, said in a statement.

    Reuters reported that portfolio investment into emerging markets hit a two-year high last month at $44 billion, and totaled $36 billion in June, IIF data showed.

    The IIF said much of August’s decline was driven by outflows from emerging Europe and Africa, though inflows to Asia and Latin America also fell.

    The slowdown in investment flows comes even as emerging market stocks touched new three-year highs on Wednesday, supported by the prospect of further monetary stimulus in the euro zone, while Moscow-listed shares rose after tentative signs of diplomatic progress over the Ukraine crisis.

    Expectations are growing that the European Central Bank will further ease monetary policy to counter sluggish growth and low inflation. Additional easing would boost demand for riskier emerging stocks, which are up some 9 percent this year.

  • Global stocks, bond yields fall as anxiety rises

    Global stocks, bond yields fall as anxiety rises

    Stock markets around the world fell on Thursday after Ukraine said Russia moved more troops into the country, escalating the risk of the region’s crisis spreading, as nervous investors shifted money into gold and United States and German government bonds.

    The euro hit a 21-month low against the Swiss franc and fell against the yen as worries about intensified fighting between the Ukrainian military and pro-Russian separatists drove investors to seek safe-haven currencies.

    Ukrainian President Petro Poroshenko said Russian forces had entered Ukraine, and he convened his security and defense council to decide how to respond.

    “Geopolitics is driving the market again, and this latest escalation in Ukraine comes as European stocks were ripe for a pull-back,” said Alexandre Baradez, chief market analyst at IG France.

    The tensions put riskier assets firmly under pressure with the Standard & Poor’s 500 index .SPX falling below the 2,000 threshold following a record close on Wednesday.

    In midday US trading, The Dow Jones industrial average .DJI fell 52.24 points, or 0.31 percent, to 17,069.77, the S&P 500 .SPX shed 3.99 points, or 0.2 percent, to 1,996.13 and the Nasdaq Composite .IXIC declined 10.15 points, or 0.22 percent, to 4,559.47.

    Reuters reported that the pan-European FTSEurofirst 300 index .FTEU3 snapped its three-day winning streak, falling 0.7 percent at 1,369.15 points. Tokyo’s Nikkei closed down 0.5 percent at 15,459.86.

    The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 nations, fell 1.81 points or 0.42 percent, to 430.44.

    Meanwhile, ten-year German Bund yields DE10YT=RR hit a record low of 0.868 percent, and 30-year U.S. bond yields US30YT=RR touched 3.059 percent, the lowest in 14 months.

    Bond yields worldwide have fallen in recent days as traders bet on new stimulus from the European Central Bank as soon as next week in a bid to avert deflation in the euro zone.

    German inflation came in at a steady 0.8 percent ahead of Friday’s euro zone number. Corresponding Spanish figures saw a slightly smaller-than-forecast drop as revised second quarter GDP held steady.

    These weak inflation readings overshadowed an upwardly revised U.S. second-quarter economic growth reading.

    In the currency market, the dollar and euro softened against safehaven yen, though the greenback retraced much of its earlier decline on the surprise upward GDP revision.

    The dollar was down 0.05 percent to 103.79 yen JPY but flat against the Swiss franc at 0.9148 franc CHF.

    The euro fell 0.3 percent to 136.62 yen EURJPY and declined 0.1 percent versus the Swiss franc to 1.2055 francs EURCHF, close to a 21-month low.

    Safe-haven demand pushed spot gold prices higher for a third day, rising 0.5 percent at 1,289.50 an ounce.

    London oil prices held above their recent 14-month lows on short-term supply concerns. Brent crude LCOc1 for October delivery was last up 19 cents or 0.18 percent at $102.91 a barrel, while U.S. crude futures CLc1 were up 72 cents or 0.77 percent, at $94.60 per barrel.

  • Equities break downtrend with N79b gain

    Equities break downtrend with N79b gain

    After five days of sustained downtrend, Nigerian equities regained the upside yesterday as investors sought to rebuild their portfolios on bargain transactions created by the recent downtrend.

    With 31 gainers to 20 losers, the market showed widespread investors’ appetite. A total of 118 stocks were traded yesterday at the Nigerian Stock Exchange (NSE), with 67 stocks closing flat on their opening prices.

    Aggregate market value of all quoted companies, which had reversed from its N14 trillion mark, rose by N79 billion to close at N13.657 trillion as against its opening value of N13.578 trillion.

    The composite index at the stock market, the All Share Index (ASI), rose from 41,121.12 points to close at 41,359.87 points, representing an increase of 0.58 per cent. The uptrend pushed the average year-to-date return 0.07 per cent.

    Besides the large number of gainers, the bullish rally was stimulated by gains recorded by several highly capitalised stocks such a Forte Oil, United Bank for Africa, Guaranty Trust Bank, FBN Holdings, Zenith Bank, Oando and Nigerian Breweries among others.

    Forte Oil topped the gainers’ list with a gain of N5.25 to close at N225.80. Ashaka Cement followed with a gain of N1.12 to close at N33.12. International Breweries added N1 to close at N28. Guaranty Trust Bank rose by 99 kobo to close at N29.87. Okomu Oil Palm gathered 98 kobo to close at N34.49. Oando chalked up 65 kobo to close at N26.15. Zenith Bank garnered 45 kobo to close at N24.75. FBN Holdings gained 39 kobo to close at N14.49. Nigerian Breweries rose by 27 kobo to N175 while United Bank for Africa rallied by 25 kobo to N7.44 per share.

    Level of activities also picked up considerably with a turnover of 263.11 million shares worth N2.50 billion in 4,622 deals. The financial services sector was the most active with a turnover of 190.88 million shares valued at N1.16 billion in 2,238 deals. Sterling Bank was the most active stock with a turnover of 62.22 million shares valued at N152.04 million in 170 deals.

    On the downside, Lafarge Africa recorded the highest loss of N2 to close at N118. Northern Nigeria Flour Mills followed with a drop of N1.05 to close at N19.95. Conoil lost 90 kobo to close at N67.10. PZ Cussons Nigeria dropped by 50 kobo to close at N35. Dangote Flour Mills lost 34 kobo to close at N7.16 while UAC of Nigeria declined by 23 kobo to close at N58.52 per share.

  • Flour Mills pledges sustained growth

    Flour Mills pledges sustained growth

    Flour Mills of Nigeria Plc yesterday outlined its growth strategy to the investing public with assurance that continuing investments and expansion of its businesses would continue to put the group on the pedestal for sustained growth in the years ahead.

    At the presentation of “Fact Behind the Figure” at the Nigerian Stock Exchange (NSE) in Lagos, group managing director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo, said the group has been able to retain good margins on all its lines of businesses in spite of increased competition, thus in a better position to support its expansion.

    He noted that the group has restructured and increased investment in its sugar company, which led to successful commissioning of a 750,000 metric tons per annual sugar refinery built at a cost of $250 million in April 2013.

    According to him, in furtherance of the its long term business model and growth strategy, Flour Mills had embarked on group restructuring, strategic business acquisitions and investment in its core food business and backward integration programmes.

    He pointed out that the immediate past year was a year of transition and steady progress is expected in the years ahead as the investments kick in adding that its sugar refining subsidiary and the packaging business are well position for future progress.

    “The group is generating strong cash flow from operating activities and is comfortably positioned for future growth,” Gbedebo assured.

    According to him, Flour Mills has continued to strategically invest in large scale commercial farming to support its food processing units with locally produced raw materials.

    He outlined that the group had invested about N41 billion in capital projects in recent period including key projects such as flour capacity expansion in its Apapa mills, completion of Golden Snacks facility in Agbara, completion of Golden Sugar Refinery, establishment of new flour mill in Calabar, expansion of pasta & noodles lines and many major agro allied projects such as investments in Sunti Golden Sugar Estates and new animal feed mill and acquisition and development of large scale commercial farming.

  • What investors should watch out for, by Vetiva

    Investors should expect modest returns and intense portfolio reallocation as the financial markets grapple with the dynamics of the monetary tightening of the apex bank and the impending elections in 2015.

    Analysts at Vetiva Capital Management Limited said they expected the second half to be characterized by cautious trades.

    Head, research, Vetiva Capital Management, Pabina Yinkere, said the capital market would continue on cautious optimism.

    Citing the main drivers of mild returns in the first half of 2014, Yinkere noted that consolidation news within the consumer goods and industrial goods space, assets acquisitions in the oil and gas space, as well as the re-weighting of the MSCI Frontier market index provided some support to the market, amidst tepid earnings release.

    He added that although stock specific news may continue to propel specific names in the market, the run up to the 2015 general elections poses a threat to returns as broader market sentiments remain cautious.

    Consequently, Vetiva estimates 2014 return would be at best 5.0 per cent while investors are however likely to move to safer asset classes. Already with year-to-date return of 12.7 per cent, Vetiva anticipates modest gains for bonds on the back of increased local demand, particularly from the pension funds.

    Discussing the changing dynamics in the industrial goods sector, Yinkere pointed out that the strategic consolidation of Lafarge holdings across its Nigeria and South African businesses to become Lafarge Africa would have several implications for the competitive landscape of the cement industry.

    According to him, using estimated installed capacity share as a proxy for the level of competition, there is likely to be a situation where the market is dominated by two big players in 2018-Dangote Cement and Lafarge Africa.

    Vetiva’s economist, Adedayo Idowu, estimated 2014 real GDP growth rate of the Nigerian economy at 6.0 per cent, ahead of the 5.49 per cent recorded in 2013.

    According to him, with the political risks ahead of the 2015 general elections, Vetiva expects GDP growth to be driven largely by the industry sector at 25 per cent of GDP, as current government focus on economy diversification creates an upside for growth.

    Going on to other economic indicators, Vetiva notes inflation and exchange rate performance would be the main determinants of monetary policy in the months ahead. The base case seems to suggest no further monetary tightening, with the Monetary Policy Rate (MPR) unchanged at 12 per cent over the second half of 2014; although in the scenario risks to prices materialize, the MPR could be increased by as much as 100 basis points.

    In his remarks, financials analyst Olalekan Olabode predicted a better second half noting that banks’ top-line performance is likely be supported by loan growth and the recent reversal of ATM charges. He however added that charges by the Asset Management Corporation of Nigeria (AMCON) would continue to be significant, accounting for an average of about 10 per cent of operating expenses for Vetiva’s coverage banks.

    He pointed out that while the banking sector lagged behind the market in the first half largely due to unimpressive results, investors should anticipate better results in the second half as the liquidity support from capital raising boosts loan growth and also supports Capital Adequacy Ratio (CAR).

    On the contrary, Consumer Goods Analyst, Efemena Esalomi said that optimism for volume and earnings growth in the consumer goods space has been tainted by numerous and sustained challenges to consumer demand and cost management. Notwithstanding, Vetiva expects investors would rebalance their portfolios to more defensive stocks even as they predict strong earnings in the period.

  • Oando, OER in $98m debt-for-equity swap

    Oando Plc and Oando Energy Resources have struck a debt-for-equity deal that would reduce the outstanding indebtedness of the latter to the former by $98 million.

    A regulatory filing obtained at the weekend that OER, the upstream member of the Oando Group, has converted equity of principal and interest totaling $98 million under the outstanding $ 1.2 billion facility agreement dated 10 February, 2014 with Oando Plc into equities for Oando.

    With this, $41 million of principal remains outstanding under the Oando loan and an aggregate principal amount of approximately $292 million remains available to be drawn under the Oando loan.

    OER issued 68.14 million units to Oando Resources Limited, a subsidiary of Oando Plc, as repayment of amounts outstanding under the Oando loan at a conversion price of C$1.57 per unit. Each unit consists of one common share of the company and one-half of one warrant to purchase an additional common share at a price of CAD$ 2 per common share up until 30 July 2016, a 24 month period from which the company closed the acquisition of the Nigerian upstream oil and gas business of ConocoPhillips.

    The terms of the units, other than the denomination of the conversion price and exercise price in United States dollars, have the same terms as the units issued to third party investors and Oando Resources on previous tranches.

    Prior to the completion of the conversion, Oando Plc owned, and exercised control or direction over, 677.96 million common shares, representing approximately 93.2 per cent of the issued and outstanding common shares.

    As a result of the conversion, Oando Plc currently beneficially owns, or exercises control or direction over, 746.11 million common shares, representing approximately 93.8 per cent of the issued and outstanding common shares.

    Where Oando decides to fully exercise these new warrants and warrants previously issued to it on previous tranches of the loan, Oando would beneficially own, or exercise control or direction over, 1.07 billion common shares, representing approximately 95.6 per cent of the company’s issued and outstanding common shares. However, Oando is restricted from exercising any warrants that would result in its ownership of the company exceeding 94.6 per cent.

    Meanwhile, amounts owing under the Oando loan in the future may be converted into units at one or more prices to be determined in accordance with the pricing mechanism earlier determined and made public on February 10, 2014.

    It should be recalled that OER recently concluded the acquisition of ConocoPhillips’ Nigerian oil assets.

  • Stakeholders flay delay in Stock Exchange’s annual report, general meeting

    early eight months after the end of the financial year, stakeholders have condemned the inability of the Nigerian Stock Exchange (NSE) to present its annual report and accounts and hold its annual general meeting within the best practice the Exchange enforces for its dealing members and quoted companies.

    Stakeholders, who spoke on condition of anonymity, being subject to regulatory supervision of the Exchange, criticized what they described as double-standard of corporate governance being implemented by the NSE, which sanctions quoted companies and stockbrokers for failing to submit their financial statement and accounts three months after the end of the reporting period.

    Dealing members of the Exchange who are entitled to receive the Exchange’s annual report and accounts and notice of annual general meeting at the weekend confirmed that they have received neither the annual report nor the notice.

    However, a reliable source in the know of the undercurrents at the Exchange said the Exchange has concluded arrangements to publish its annual report and accounts and notice of annual general meeting.

    According to the source, the Exchange will send its audited report to its members and make all necessary public publications before the end of this month in order to comply with the mandatory 21-day notice of annual general meeting. The source hinted that the Exchange’s general meeting has been scheduled for September 24.

    Stakeholders said the Exchange should take the lead in corporate governance noting that while the Exchange enforces the stringent post-listing rules on periodic reporting for quoted companies and its dealing members which have complex operations, it should demonstrate the practicability of its rules by complying with the minimum standards.

    They pointed out that the continuous failure of the NSE to meet the basic best practice that it sets for quoted companies and its members undermines the corporate governance at the market.

    Post-listing rules of NSE states that audited annual accounts of companies should be submitted within three months after the year end while quarterly financial statements are expected to be made available 45 days after the end of the quarter. Stockbrokers, who are members of the NSE, are also expected to comply with similar rule.

    While it does grant extension of a month, the NSE has been tough on implementing the rule on submission of reports. After the expiration of a one-month extension on April 30, 2014, the NSE had imposed a weekly fine of not less than N100, 000 each on all the companies that failed to submit their 2013 audited annual reports and accounts by the expiration of the extended deadline.

    The NSE had in a response to exclusive media enquiry by The Nation, stated that it has no intention to grant further extension of the April 30, 2014 deadline. The NSE stated that barely half of companies with December 31, 2013 year-end met the deadline and that defaulters will be sanctioned in line with Appendix 111 of the NSE Greenbook, which contains listing requirements.

    Section 14 of the Appendix 111 states that “any late submission of accounts shall attract a fine of N100, 000 per week from the due date until the date of submission” while “a listed company who contravenes any of the provisions of the Listing Rules and General Undertaking and fails to pay the penalty imposed on it for such contravention on or before the due date shall be liable to a further fine of N300, 000 in addition to N25, 000 per day for the period the violation continues”.

    Besides, the sanctioned companies are expected to state in their subsequent annual report details of contraventions and the sanctions imposed for such contraventions.

    According to the NSE, there were 136 companies with December year-end but only 71 companies had submitted by the close of working hours.

    “The Exchange has granted a one month extension to all listed companies irrespective of their year-end to submit their audited accounts and reports. There is no present intention to grant any further extensions,” the NSE had stated.

    The Nation’s check indicated that the NSE then tagged 80 companies with its “Below Listing Standard” (BLS), which confirmed their failure to submit their audited annual reports within the deadline and also confirms the imposition of sanctions. The 80 companies included 65 companies with December year-end and some 15 companies with year-end within the previous year.

    The sanctioned companies included  Dangote Flour Mills Plc, National Salt Company Nigeria Plc, UTC Nigeria Plc,  Continental Reinsurance Plc,   Royal Exchange Plc, Capital Oil Plc,  Aso Savings & Loans Plc,  John Holt Plc, Deap Capital Mgt & Trust Plc and Juli Plc.

    Also, a report on sanctions and fines for similar defaults in 2013 showed that the Exchange slammed about N105.9 million on 48 companies that delayed their results. The fines ranged between N200, 000 and N6.8 million.

    The NSE had slammed some N60.2 million as fines on 34 companies for failure to meet deadlines for 2011 audited reports. With a range of N3.8 million and N100, 000, average fine for the year was N1.77 million.

    When The Nation first exclusively reported concerns about the non-availability of the annual report of the NSE in May, NSE had responded that it has nine months to present its annual report and hold a general meeting of its members.

    Head, Legal and Regulatory Department, Nigerian Stock Exchange, Ms. Tinuade Awe had noted that “under the Companies and Allied Matters Act (, Section 345), The Exchange is required to lay its financial statements before a general meeting of its members no later than nine months after the year end covered by the statements. Our plan is to convene the AGM for our 31 December 2011 year end, ahead of the 30 September 2012 deadline.”

    Market operators however had described the position of the NSE as unacceptable escapism noting that while the same CAMA and Investment and Securities Act (ISA) applied to all corporate entities, NSE had relied on its rules to impose sanctions on companies. They said NSE should be held to the same standards it set for quoted companies and market operators under its regulations.