The Nation Newspaper

Tag: NSE

  • Exchange council approves new rules for brokers

    Exchange council approves new rules for brokers

    The Council of the Nigerian Stock Exchange (NSE) has approved many new rules and made amendments to the rules governing dealing members.

    In a notification entitled: Additions and amendments to rules and regulations governing dealing members and invitation for comments, sent to licensed stockbrokers, the NSE indicated that the new rules included the order entry and execution rule, obvious error rule and churning, fictitious or deceptive trading pattern rule.

    Head, Legal and Regulation, Tinuade Awe, said the Exchange embarked on the review of its rules and regulations in order to improve them to international standards.

    According to her, the NSE strives to create a globally competitive market by enacting provisions that enhance the transparency of its operations – through which it aims to sustain and promote stakeholder confidence in the Nigerian capital market.

    She, however, added that the rules and amendments are subject to the approval of the Securities and Exchange Commission (SEC).

    Part of the new rules included article 87, which contains amendments to trading parameters and now makes provisions for lot sizes and display of quotes and orders.

    Also, Article 88, which contains amendments to trade types, makes provisions for order entry parameters, entry of limit and market orders, contents of orders, time-in-force limit orders while it also provides for time stamping of orders for ranking and then processing of orders.

    A major amendment under Article 90 makes provision on suspension of trading. The Chief Executive Officer of the NSE is empowered to halt or suspend trading when he deems such action necessary or appropriate to the maintenance of a fair and orderly market or for the protection of investors, or otherwise in the public interest. However, the chief executive officer must notify the council of the Exchange as soon as possible.

    A new rule under Article 95A provides procedures for dealing with obvious errors. The new rule empowers the NSE to cancel or adjust transactions that arise out of obvious errors, cancel or adjust pending bids and offers in that regard or halt trading in one or more securities pending the resolution of an obvious error.

    Article 100 contains amendments to the provision on pricing methodology and provides that securities shall trade in price increments of one kobo. It also makes provisions for determining the opening and closing prices of securities on any trading day, price movements and price limits; and small trades.

    Besides, the NSE amended provision on fine for unauthorised sale of securities by imposing much larger fines to deter unethical practices among dealing members. In addition to the larger fines, a dealing member, which has previously engaged in unauthorised sale of securities, shall also have its dealing licence withdrawn by the council of the Exchange.

  • NSE to sanction firms for breach of online disclosures

    Companies, which violate the rules governing the newly introduced online information-disclosure portal of the Nigerian Stock Exchange (NSE) would be liable to a fine of 50 per cent of their yearly listing fees, according to the draft rules on the use of the issuers’ portal obtained by The Nation.

    Companies will also be required to indemnify the Exchange for damages or loss it may suffer as a result of any inaccurate, misleading, false or deceptive statement contained in the information they submit to the NSE through the issuers’ portal.

    The Issuers’ Portal, otherwise known as X-Issuer, was launched on March 26, this year. It aims at enhancing transparency, trading, information dissemination and fair play for stakeholders to build and grow their businesses.

    The draft rules on the use of the issuers’ portal, already approved by the council of the NSE, is being subjected to review by stakeholders, especially quoted companies, which the rules directly affect. The final draft will then be submitted to the Securities and Exchange Commission (SEC), which will authorise the final rules on the use of the issuers’ portal.

    The issuers’ portal rules will become effective immediately after approval of SEC and publication of the rules on the website of the NSE. However, sanctions relating to earnings reports, forecasts and other disclosures will only take effect on January 1 after the approval by SEC.

    According to the draft, it’s compulsory for quoted companies to use the issuers’ portal for submission of information to the Exchange in compliance with the listings rules, unless such information falls within an excluded category as the Exchange may in its sole discretion prescribe from time to time.

    The draft designates the issuers’ portal as the single gateway for filing all periodic and structured and continuous disclosures. The draft described periodic and structured disclosures to include audited and unaudited financial statements, earnings forecast and corporate actions. Continuous disclosures were described as notifications of material information including notice of annual general meeting, notice of board meeting, notice of change of auditors, notice of change of company secretary, notice of change of name and registered address, notice of change of registrars, notice of completion board meeting, notice of court ordered meeting, notice of directors dealings, notice of extra-ordinary general meeting and notice of resignation and appointment of directors.

    Rule 8 of the draft requires companies to publish the same information on interim and audited earnings report, forecasts and corporate actions that it submitted to the issuers’ portal on its corporate website not later than the close of business on the day after the company submits such information to the online portal. Besides, the rule mandates companies to ensure that such information remains on their corporate websites for a period of years from the date it is posted thereon.

    Any company that fails to comply with Rule 8 would be liable to a fine of 50 per cent of its yearly listing fee.

    Also, any company that fails to submit its periodic and structured information as well as continuous disclosures through the issuers’ portal would be liable to pay a fine of 50 per cent of its yearly listing fee.

    The draft requires every company to appoint and duly notify the NSE of a designated user, who will be the sole authorised user for posting of information to the issuers’ portal. Every company or issuer is required to exercise all reasonable care to ensure that any information it submits through the issuers’ portal is accurate, not misleading, false or deceptive and does not omit any material facts likely to affect the import of such information.

    The draft also specifies the formats for information disclosures and requires all companies or issuing entities to comply with such formats.

    In the event of any misleading, false or deceptive disclosure or omission of any material fact as well as dereliction in terms of rules governing designated user and failure to comply with stipulated format, the company or issuer shall be liable to pay 50 per cent of its yearly listing fee as a fine.

  • Forte Oil exudes confidence on 2012 profit

    Forte Oil exudes confidence on 2012 profit

    Forte Oil Plc would consolidate its profitability this year as the petroleum-marketing company’s restructurings paid off with reverse of N20 billion pre-tax loss with a pre-tax profit of N1.15 billion in 2012.

    Audited report and accounts of Forte Oil for the year ended December 31, 2012 showed that the group recorded profit before taxes of N1.15 billion compared with a loss of N19.95 billion in 2011. Profit after taxes also turned positive at N1.01 billion from a loss after taxes of N19.54 billion. While turnover dropped by 22.22 per cent, gross profit increased by 16.25 per cent from N8.73 billion to N10.15 billion.

    Fundamental analysis showed that gross profit margin increased from seven per cent in 2011 to 11 per cent last year. The ratio of operating expenses to total sales improved commendably from 19.23 per cent to five per cent. The company’s net cashflow from operating activities also recovered from a whopping deficit of N10.5 billion in 2011 to a positive net operating cashflow of N3.5 billion in 2012, which underlined the company’s improved operational efficiency and cashflow management.

    The results were prepared in line with the International Financial Reporting Standards (IFRS) and have been approved by the Nigerian Stock Exchange (NSE).

    Commenting on the results, Group Chief Executive Officer, Forte Oil Plc, Mr Akin Akinfemiwa, said 2012 earnings report underscored the immediate success of the company’s three-year transformation plan to a lean, talent-based and technology-driven organisation.

    “As we move into 2013 and beyond, we are positive that we shall consolidate on the gains of 2012 to achieve exceptional performance as we move towards our vision of becoming Africa’s number one energy solutions provider,” Akinfemiwa said.

    He noted that Forte Oil Plc had in 2011 carried out a restructuring of its business to transform it into a lean, talent-based and technology-driven organisation that will be more responsive to the needs of its customers.

    He said the restructuring reflects on its improved operational efficiency which is denoted by improved controls across business lines, stronger corporate governance, compliance at all levels as well as the introduction of the foremost business enterprise solution-SAP.

    “The 2012 report is an indication that the company has finally turned the corner towards full recovery. Forte Oil Plc believes its efforts will in no time; translate to strong market dominance and thereon strong and sustainable profitability and robust returns to our shareholders,” Akinfemiwa said.

    Forte Oil has more than 160,000 shareholders.

  • NSE to exit ‘Trade Alert’ contract

    THE Nigerian Stock Exchange (NSE) has finally decided to exit the trade alert contract it entered during the erstwhile Director General of the exchange Prof. Ndi Okereke-Onyiuke some years ago.

    Trade Alert is a device designed to check fraudulent sale of shares of shareholders of quoted stocks on the NSE.

    While giving further clarification to the pending issue of the brokers being charged for data dissemination, the Executive Director, Market Operations and Technology, Adeolu Bajomo, said they are already looking into the contract alongside some others such as Bloomberg, not to renew their contract.

    This is because the exchange is trying everything possible not to increase cost for stakeholders in the capital market. The Exchange agreed that Trade alert is a good mechanism and good initiative but the cost is very high.

    “We (NSE) have taken the steps to negotiate the exchange out of the contract. By the end of this year we will have a new version of trade alert. We will label it and brand it whatever we like but not the same old version as you know. The exchange intends to bring an additional value for price imperceptive to the market when we actually take over the service,” the NSE said.

    Shedding more light, the NSE said contrary to speculations that it is another form of trade alert where the new management wants to make cheap money, that they have consulted wide and large and have recognised that some brokers are using the NSE data outside the term of agreement of them using it.

    “It’s a form of awareness and has been misinterpreted. At present, I can tell you categorically that there is absolutely no deal with anybody to have exclusive right to the NSE data.”

  • CIS urges NSE to review data licensing policy

    CIS urges NSE to review data licensing policy

    Stockbrokers have urged the Nigerian Stock Exchange (NSE) to reconsider its decision to impose fees on brokers and other professional users and distributors of the Exchange’s data in the interest of the development of the capital market.

    But NSE defended its action, saying the proposed fee is the normal practice for global stock exchanges.

    President, Chartered Institute of Stockbrokers (CIS), Mr Ariyo Olushekun, who spoke on behalf of his colleagues, said the proposed fees was counter-productive to efforts by brokers and other operators to improve investors’ education and widen awareness and participation in the Nigerian capital market.

    He outlined that the NSE needs to reconsider the decision against the background of several reasons including the nascent nature and low level of participation in the Nigerian capital market, the nature of operations of stockbrokers, which thrive on investors’ education, the primary and basic nature of these data and the public availability of such data.

    According to him, with less than five per cent of Nigeria’s estimated 170 million population participating in the capital market, there is need to encourage massive information dissemination rather than restricting dissemination of even basic data such as price and trading data.

    He noted that the information the NSE wanted to charge for are basic public information, which newspapers give out, pointing out that if the data licensing policy was based on specialised services such as live streaming of data and linking of website to NSE’s website, it would have been understandable.

    “The move is counter-productive, people need information; basic information about share prices and transactions. Why do we want to blackout ourselves? The NSE should encourage brokers to give out these figures to encourage investors rather than impeding flow of information,” Olushekun said.

    The CIS chief pointed out that the NSE is the main beneficiary of the information dissemination and marketing efforts of brokers as the Exchange has specific charges on all transactions, which brokers had incurred to initiate, market and conclude their transactions.

    He said that operators and regulators should avoid bickering that could undermine the recovery of the market, urging all stakeholders to work together to support the development of the market.

    “This move will drive investors away from the market. What has happened since the announcement of this licensing policy is that brokers have stopped sending market reports to investors. We are urging them to rescind this decision,” Olushekun said.

    He reiterated the supports of stockbrokers as the main body of operators in the stock market for all genuine efforts to develop the capital market.

    Meanwhile, the Exchange has said that the proposed fee would be used to cover some of the huge cost incurred in generating, storing and disseminating the data, which incidentally is also a key element of their intellectual property rights.

    The NSE stated that market data sales account for a sizeable portion of the income of many global Exchanges. It said: “We have however, offered a discounted fee for our broker/dealer firms and the domestic professional end of the market, to facilitate improved access and priced the service competitively in comparison to other Stock Exchanges. We have also taken steps to ensure that the retail end of the market can continue to access some of the key market data information at no cost via our web and electronic mail services using the above links.”

    The Exchange, in a statement by its management reassured the investing community and wider market stakeholders of its commitment to the provision of quality and timely market data access to them and will continue to take steps to ensure that this commitment is maintained at all times.

    It noted that its market dada is a strong proponent of prolific data access, accurate and timely dissemination to the investing community and wider stakeholders of the market. Besides, the NSE said its data facilitates market transparency, better investment decision making and improved access to the capital market.

    The NSE pointed out that in the light of its commitment to timely information; it had initiated several initiatives to provide free access to data for the market stakeholders including provision of a near real-time ticker on its website and provision of a number of end of day and historical data on the Exchange’s website.

    “In order to further the objectives of providing a quality and timely market data dissemination service, the Exchange took direct control of its Market Data business in October 2012 from EDS and some of our market data vendors, which include reputable global market data distributors such as Reuters, Bloomberg, SIX Telekurs, DirectFN, Interactive Data and I-NET Bridge, it noted.

    All these initiatives according to the Exchange, have improved service levels.

    For the professional end of the market, index creators and data distributors, the norm is according to the Exchange is for them to pay for data access and any subsequent distribution to support their professional use. Data distributors it explained, cover any organisation (including broker/dealer firms) receiving The Exchange’s data and forwarding these to other market stakeholders for both professional and non-professional use.

     

  • Growth agenda for NSE leadership

    Growth agenda for NSE leadership

    THE Nigerian Stock Exchange (NSE) is witnessing a drought of Initial Public Offerings (IPOs) as a hangover effect of the 2008 market meltdown and partly due to NSE’s marketing strategy which needs to be more targeted and strengthened in both creativity and intensity.

    The institution need to attract further listings because virtually the companies listed on the exchange came on board by government fiat, namely, indigenisation decrees, privatisation and banking consolidation otherwise the number of listed companies would have fallen short of what obtains now. The NSE should intensify marketing and business development to transform into a target driven organisation in attracting listings.

    With the billionaire business magnate, Alhaji Aliko Dangote as the President of the NSE, market watchers are optimistic that his tenure will witness the listing of a good number of high profile companies and medium scale businesses with growth potential.

    Dangote is super rich, powerful, very influential and a role model who appreciates the benefits of businesses listing on the exchange, having listed a multiple of his own companies almost in one fell swoop.

    As President and an outstanding business mogul, who operates in the centre, it is expected that he will be a strong advocate of listing and also spearhead and the lobby of GSM operators to list their shares on the exchange sooner than later both as a patriotic act, and to also recompense Nigerians for their brand loyalty all these years, and to allow them share in their stupendous wealth.

    It is expected that the MTN brand will be the first to list for obvious reasons. It has enjoyed exceptional brand loyalty since inception even when it operated a somehow strict and inflexible billing regime until Glo stepped into the arena with the elusive per second billing system which brought a breath of fresh air as it were in a demonstration of the beauty of competition.

    The listing of GSM operators will create big waves in the capital market and return public attention and interest to the market. It has the potential to return investor confidence in the market overnight as investors will most likely scramble for their shares both for pecuniary gains and for sentimental attachments to the brands.

    Their listing will deepen the market. Initial Public Offerings generate attention and frenzy in the stock market and serve as public relations and marketing platforms for the market generally and the NSE in particular because of the sustained advertisements in the mass media.

    The power of information and communication in driving growth in the stock market is immense. It serves as a lubricant in a changing and dynamic market though the NSE seems not to fully appreciate the power of effective communication which explains why it seems not to have an obvious communication strategy.

    Information is one of the tripods and major determinant of stock market efficiency, the other two being transparency and integrity. Besides raw technical data which experts process for making investment decisions, educational information which drives the socio-psychological dynamics of the market also need to be structured and delivered at regular intervals with a maximum impact. The NSE needs to intensify communication in diverse ways.

    Investor education should be top priority because the high level of stock market illiteracy was also a major contributing factor why most investors suffered heavy losses in 2008. They blindly waded into the stock market without the basic understanding of the up and down operating nature of the stock market.

    The NSE should also devise to educate the investing public on the A, B, C of the newly introduced Exchange Traded Funds (ETF), and also the Real Estate Investment Trusts (REITS), which offers even better returns than equities.

    But how many investors know that? In the 1980s up to 2000, the NSE used to have a pamphlet on frequently asked questions on the stock market which the investing public and scholars found useful.

    A regime of the disinformation, misinformation, information mismanagement, under communication, ineffective communication and illiteracy, take away from the bottom line.

    Communication opaque institutions are fertile grounds for rumors, speculations and hearsay, all of which are inimical to stock market growth. They have the potential to trigger crises. Crisis could break out at any time, just as it could be about anything as events in the past have shown.

    Often time corporate bodies take issues of communication for granted as such they budget little or nothing for it because it is considered an intangible.They are lackadaisical about it until they get caught in the middle of a crisis and they will begin to run helter-skelter, and being penny wise and pound foolish, as they say. But the best way to manage crisis is to nip it in the bud through effective communication.

    Because of the dynamic nature of the stock market, the NSE should think of constituting a standing Crisis Committee and also retain the services of a third party advocate versed both in capital market concepts and operations.

    Now that trends are looking up in the stock market, it is also expected that the IPOs will not be long in coming to resuscitate the moribund primary market for a full effect.

    •Arize Nwobu, Acs, is the Lead Consultant, Charterstock, an advisory firm in investor relations, research and strategic communications with emphasis on capital market operations.

     

  • NSE: Equities’ price change now to move by 10 per cent

    Market considerations of all equities quoted on the Nigerian stock market would in the next few weeks be allowed to move within a daily limit of 10 per cent as against the current general market daily allowable price change of 5.0 per cent.

    Executive director, operations, Securities and Exchange Commission (SEC), Mr Munir Gwarzo, who disclosed this yesterday in Lagos, said that the Nigerian Stock Exchange (NSE) would spread the 10 per cent daily allowable price change currently being enjoyed by only stocks in the market-making basket to cover all equities.

    Under the rules of the NSE, market values of stocks in the portfolio for market making could witness maximum daily change of 10 per cent as against maximum daily allowable percentage change of 5.0 per cent for the general market.

    The market making function subsequently kicked off on September 18, 2012 with 16 stocks selected for the take-off phase. The NSE has since continuously been increasing the coverage of market making. It last week added Flour Mills Nigeria Plc, Unilever Nigeria Plc, Royal Exchange Plc, and Wema Bank Plc to the list, bringing the number of stocks that have been rolled into the initiative to 43.

    Other market-making stocks included Oando, Unity Bank Plc, Seven-Up Bottling Company Plc, United Bank for Africa Plc, Access Bank, PZ Cussons Nigeria Plc, Nigerian Bag Manufacturing Company Plc, Presco Plc, Ecobank Transnational Incorporated (ETI), International Breweries, Lafarge Wapco Cement Nigeria, Julius Berger Nigeria Plc, Guinness Nigeria Plc, Dangote Flour Mills Plc, Academy Press, Fidson Healthcare Plc, Redstar Express Plc, Ashaka Cement Plc, Skye Bank Plc, Zenith Bank Plc, Dangote Cement Plc, UAC-Property Development Company, Custodian & Allied Insurance, Sterling Bank Plc, Prestige Assurance Company Plc, FBN Holdings, DN Meyer, Stanbic IBTC Holdings, Nestle Nigeria Plc, Diamond Bank, Dangote Sugar Refinery, Fidelity Bank Plc, Union Bank of Nigeria, National Salt Company of Nigeria (NASCON), Nigerian Breweries Plc, Transnational Corporation of Nigeria Plc, Airline Services & Logistics Plc, AIICO Insurance Plc, Guaranty Trust Bank Plc and UAC of Nigeria Plc.

    Gwarzo allayed fears that the market-making might be disruptive to the price discovery at the market pointing out that the initiative has been more beneficial to the market.

    Meanwhile, the stock market recorded its third consecutive decline yesterday as with the mian index at the NSE, the All Share Index (ASI) slipping by 0.16 per cent to close at 32,731.08 points. Market capitalisation declined marginally by N17.11 billion to close at N10.47 trillion. The decline yesterday pushed the average year-to-date return down to 16.57 per cent.

    With 33 decliners to 24 advancers, the decline was further orchestrated by losses by some highly capitalised stocks. Total turnover stood at 278.97 million valued at N3.67 billion in 5,794 deals.

  • Listing’s test of our strength, says Registrar

    Listing’s test of our strength, says Registrar

    The recent landmark listing of African prudential Registrars (APR) Plc as the first share registration company to be listed on the Nigerian Stock Exchange (NSE) underscored the strengths of the company as a leader in its business segment.

    Managing Director, African prudential Registrars (APR) Plc, Mr Peter Ashade, said the listing of the company provided a unique test to appraise its fundamentals and business structure, which were affirmed to meet the stringent standards for listed companies.

    According to him, being the only registrar listed on the stock exchange gives APR a level of accountability and openness that far exceeds its competitors.

    He noted that the process of listing a company is rigorous and as such, the listing of APR sets its apart from other competitors.

    “Not every company can withstand the scrutiny required by the listing process. It requires visible accounting, proper systems and ongoing processes to meet the standards,” Ashade said.

    He added that the company would leverage on the additional surveillance and opportunities provided by the listing to continue to provide clients with products and services that justify their confidence.

    He pointed out that APR’s consistent use of innovation to drive its business has resulted in sustained growth of its shareholders fund from N1.6 billion in 2010 to N2.3 billion in 2012, and a 35.4 per cent compound yearly growth rate.

    According to him, APR is rated as Nigeria’s number one corporate registrar for innovative use of technology to improve its services.

    The company was the first in the share registration business to deploy an e-stock software application.

    He noted that in 2008, APR had pioneered an online e-share registration service receive which proved a major turning point for the business and ensured a higher level of convenience for clients.

    The simple innovation, he pointed out, shifted the paradigm of manual share register administration and brought it to the fingertips of shareholders and clients.

    He said the company recorded an increase of 100 per cent in profit before tax last year, assuring that it would continue to delight shareholders with better performance.

    Formerly known as UBA Registrars, APR was spun off from the United Bank for Africa (UBA) Group) and it has authorised and fully paid share capital of N500 million. Its shares are held by several local and international investors, the most prominent of which is Heirs Holdings, the pan-African investment company with long term, strategic interests in key economic sectors that generate social wealth.

  • ‘Why retail bond trading isn’t attractive’

    ‘Why retail bond trading isn’t attractive’

    Why has retail bond trading not been attractive, several weeks after it was introduced to the Nigerian Stock Exchange (NSE)?

    According to experts, poor awareness, investors’ inability to get fair values on investment when leaving the market, attractions from the stock market, among others, prevent individuals from investing in the market.

    The market has been selling less than N10 million worth of bonds to retail investors daily since February 1, when NSE began trading on the instrument.

    Before now, bonds were being sold at wholesale rates, with Deposit Money Banks (DMBs) and Discount Houses serving as the Primary Market Dealers.

    The need to deepen the market, make it more participatory, and improve government’s fiscal  programmes made the Debt Management Office (DMO) to initiate retail bond investment. It appointed Stanbic/IBTC Plc as the sole government broker to sell the instrument.

    But the instrument is yet to attract enough patronage. For instance, investors bought 510,000 units of the fixed-income instruments valued at N600, 000 in 31 deals on February 1.

    At the close of trading on February 15, investors purchased 5,560 units in 22 deals valued at N6.9million. On February 19, 6,040 units in 19 deals valued at N7.7million were sold .

    Managing Director, BGL Securities Limited, Mr Sunday Adebola said the volumes of bonds trading at the retail segment of the market were insignificant. This, he said, had been the trend since trading began on the instrument in February. He said investors have low perception of the instrument, and are reluctant to invest in it.

    He said: “When you check the list of symbols traded on bonds at the retail window, you would observe that less than N10 million bonds are being sold on daily basis. There are different series of Federal Government of Nigeria (FGN) retail bonds. Bonds have different maturity periods. Prominent among the bonds that are being patronised are FG 9B2017S2 and FG9B2019S1. The awareness level is poor, hence the refusal of investors to buy the bonds.”

    He said though retail bond transaction is at infancy stage, the patronage is still very low considering the fact that investors are looking for means of diversifying their portfolios to reduce risks.

    He said the process of exiting the bonds market is cumbersome, unlike the stock market where investors can enter and exit at will, depending on their motives for making such investments. This, he said, may make some people to look for investments with a flexible and easier mode of exit.

    A former General Manager, Heritage Investments and Securities Limited, Mr Tayo Bello, said also investors are not likely to get fair values when they are exiting the bonds market.  He said there is a timeline for investing and getting results in bonds, adding that investors exiting the market before maturity dates would not get full value for their investment.

    “Once you are exiting the bonds market before the maturity periods, either as retail or wholesale investors, you are doing so at discounted rates. This means that investors would get lower returns on their investments. Besides, the rates of investing in retail bonds are a little bit higher and this may prevent some investors from going into it,” he added.

    He said the stock market is bouncing back as confirmed by the increase in the market capitalisation and All-Share Index among other market indices. Besides, he said retail investors may prefer equities to bonds.

  • NSE fines 30 firms N50m

    NSE fines 30 firms N50m

    The Nigerian Stock Exchange (NSE) has imposed a N50 million fine on 30 companies, that violated trading rules, its Chief Executive Officer, Oscar Onyema has said.

    He said 14 companies have been suspended because the regulators believe that punishing rule breakers would serve as deterrent to others.

    Onyema, who spoke at the Standard Bank Investors’ Conference in Lagos, reiterated the NSE’s commitment to achieving zero tolerance for operators that violate market rules.

    He said while penalties for violating trading rules should be commensurate with the offences, they must be stiff enough to discourage violations.

    He said the enforcement regime would also be that which attracts the confidence of participants in its process and outcome, adding that the integrity of any market can be measured by the level of information disclosure, transparency and quality of governance of institutions.

    He said the Commission is would ensure that public companies release periodic information promptly, stressing that the greatest asset of any capital market and, indeed, financial market is its investors. It is investors, whether retail or institutional, who provide the savings which are needed for productive investment, he said.

    He insisted that if investors lose confidence in the capital market, the ability of the market to mobilise and channel long term funds, which are vital to economic development, willbe marred.

    He said it is impossible to effectively monitor an increasingly sophisticated and dynamic market without the application of technology. The regulators, he said, is leveraging on technology to police activities in the market.

    He said such technology would improve the capacity to detect insider dealings, market manipulation and other forms of abuses, adding that investigation would remain a core component of the enforcement regime.

    Nigeria’s benchmark stock index rose to the highest in more than four years as investors speculated that lenders would post positive year-end earnings. Investors are expecting “good results for the end of 2012 and to be delivered a good dividend. Analysts insisted that banks are expected to start reporting year-end earnings in March and the next few weeks are expected to be interesting.