The Nation Newspaper

Tag: NSE

  • NSE begins trade on retail bond

    NSE begins trade on retail bond

    THE Nigerian Stock Exchange (NSE) on Friday made history as it opened a window for low net -worth investors to enjoy the benefit of investing in bonds.

    Also, it admitted on its Daily Official List the Lagos State’s N80 billion 14.50 per cent fixed rate bond series 1 bond due in 2019.

    Earlier, retail investors have been denied the opportunity of trading in bonds due to the huge sums required and absence of secondary trading platform.Only high net worth and institutional investors have been enjoying benefits of this sector.

    However, retail investor can now access the bonds market with a minimum of N10,000 and enjoy regular returns on investments among other benefits.

    Speaking on the take-off of the retail bond trading on the floor of the NSE, its Chief Executive Officer, Mr Oscar Onyema, expressed satisfaction that the exchange has been able to activate a platform that will allow retail investors participant in fixed income securities market.

    According to him, on the first day of trading, there were 13 trades that involved 510,000 units of bonds worth N600,000.

    “Although it is a small beginning but it has proved the concept that people can trade bond with small amount and investors can take position because it cuts across market makers and brokers-dealers on the floor. Today (last Friday) is the beginning and we expect bigger volume and value traded as we go along,” Onyema said.

    He explained that the NSE retail bonds trading platform would exist alongside the existing over the counter (OTC) market.

    “The retail bond trading is very complementary to the OTC market because the OTC market is very institutional and ticket prices are bigger. What we are doing (through the retail bond trading) is to really try to bring the retail participants into the fixed income market,” he said.

    Listing the benefit of the platform, the NSE chief said it would allow investors to diversify their portfolio and hence manage the risk of exposure into the market using well established channels.

    However, trading last week on the floor of the Exchanged recorded a total of 2.813 billion shares worth N22.188 billion in 33,123 deals as against a total of 2.612 billion shares valued at N19.152 billion that exchanged hands the previous week in 27,186 deals.

    The Financial Services sector was the most active during the week, contributing 79.64 per cent to the total equity turnover volume with 2.240 billion shares worth N14.761 billion exchanged hands by investors in 19,656 deals.

    Similarly, the Banking sub-sector of the Financial Services sector was the most active during the week; with 1.583 billion shares worth N12.581 billion traded in 13,629 deals.

    Volume in the Banking sub-sector was largely driven by activities in the shares of Ecobank Transnational Incorporated Plc, Unity Bank Plc and UBA Plc. Trading in the shares of the three banks accounted for 844.849 million shares, representing 53.37 per cent, 37.71 per cent and 30.03 per cent of the turnover recorded by the sub-sector, sector and total turnover for the week.

    Also traded during the week were 234 units of NewGold Exchange Traded Funds (ETFs) valued at N595, 491 exchanged hands in five deals in contrast to a total of 196 units valued at N504,481 transacted the previous week in four deals.

    In addition, 610 units of FGN bonds valued at N76,432 were traded during the week in 14 deals. However, there were no transactions in the state/local government bonds and corporate bonds/debentures sectors.

     

  • NSE moves trading index

    Another index is on the way to bring the total number of indices to seven.

    The Nation at the weekend confirmed from a source close to the Nigerian Stock Exchange (NSE) that NSE 50 will be the new addition to the family.

    These include NSE 30, NSE LII while the remaining four are sectoral indices which include NSE Consumer, NSE Banking, NSE Insurance and NSE Oil & Gas.

    According to the source, NSE 30 and NSE 50 will have the top 30 and top 50 equities each with different criteria to justify their position. But the possibility of having all or most of the stocks in the top 30 equities reappear in the top 50 equities cannot be ruled out.

    It would be recalled that the NSE began publishing The NSE 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NSE developed the four sectorial indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectorial indices comprise of the top most capitalised and liquid companies in the sector.Just last month, as a prelude to the year-end review of The NSE 30 Index and other Sectorial Indices, the Index Committee of The NSE undertook a pseudo-review of the indices and released the names of the likely incoming and exiting equities.

    The composition of the indices became effective on Wednesday, January 2, 2013.The pseudo review of NSE 30 and Sectorial indices, which is done twice yearly in June and December is a run-up to the actual review to be undertaken at respective month ends.

    According to the committee’s recommendation, the number of stocks comprising the NSE Consumer Goods Index increased from 10 to 15; NSE Insurance Index increased from 10 to 15 while the NSE Oil/Gas Index increased to 7 stocks as against the 5 it initially operated with.

    The NSE 30 Index and the NSE Banking Index retain their 30 stocks and 10 stocks respectively. Reason given was to allow for adequate portfolio diversification.

     

     

    The breakdown of the likely composition of the indices shows that the NSE 30 Index have Glaxo Smithkline Consumer Plc; Union Bank of Nigeria Plc; International Breweries Plc; Julius Berger Nigeria Plc; 7-UP Bottling Co. Plc and Sterling Bank Plc replaced Law Union & Rock Ins. Plc; Transnational Corporation of Nig. Plc; National Salt Co. of Nig. Plc; Oando Plc; Dangote Flour Mills Plc and Mobil Oil Nigeria Plc.

    Under the NSE Consumer Goods Index, International Breweries Plc; National salt; Honeywell Flour Mills Plc; Vitafoam Plc; UTC Plc; Multi-Trex Integrated Foods Plc and Northern Nig. Flour Mills Plc replaced 7-Up Bottling Plc; Cadbury Nigeria Plc; Dangote Flour Mills; Unilever Nigeria; PZ Cussons Nigeria Plc; Dangote Sugar Refinery Plc and Flour Mills of Nigeria Plc.

    The NSE Banking Index has Union Bank; Diamond Bank; Sterling Bank Plc; Unity Bank Plc and Wema Bank Plc to replace FBNH; Stanbic Holdco; Fidelity Bank Plc; First City Monument Bank Plc and Skye Bank Plc.

    Niger Insurance Plc; Cornerstone Insurance Plc; Standard Alliance Ins. Plc; Lasaco Assurance Plc; Sovereign Trust Insurance Plc; Linkage Assurance Plc and Prestige Assurance Plc to replace The Insurance Index while Unity Kapital Assurance Plc; Mutual Benefits Assurance Plc.; Goldlink Insurance Plc; Aiico Insurance Plc; Wapic Insurance Plc; Continental Reinsurance Plc and Mutual Benefits Assurance Plc.

    The NSE Oil/Gas Index has MRS Oil Nigeria Plc; Japaul Oil & Maritime Services Plc; Eterna Plc; Beco Petroleum Products Plc also replaced Forte Oil Plc; Conoil Plc; Mobil Nigeria and Oando Plc.

     

     

     

  • NSE introduces internal whistle blowing

    TO have an effective corporate governance regime, the management of the Nigerian Stock Exchange (NSE) is set to introduce an internal whistle blowing for the organisation.

    The Nation learnt that the council has approved the proposal to incorporate the scheme into the staff handbook, adding that the handbook has been given to the staff.

    By last week, notices had been served on staff members, requiring that they endorse a portion of the document signifying compliance by the rules in the book.

    According to investigation, a proper structure needs to be put in place for those interested in using the instrument to take advantage of it. It was learnt that the internal whistle blowing was meant to protect employees.

    “For an effective Corporate Governance, every organisation should have such scheme in place. Management of any organisation that is worth its salt should have a good corporate governance structure where a channel will provide a means of getting the pulse of the staff, rather than from outsiders or through the media.”, the source said.

    It would be recalled that the legal and regulation of the exchange under which the Marketing Surveillance Department operates, recently stated that the whistle blowing scheme for the market will be launched this year.

    The exchange said it would be needed and that they are in the plan.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • NSE lists 2.897b new shares

    · Market cap adds N55b

    ADDITIONAL 2,897,207,843 ordinary shares of 50 kobo each at 50 kobo per share were added to the outstanding shares of Linkage Assurance Plc last Friday at the Nigerain Stock Exchange (NSE).

    The supplementary listing, it was learnt, was as a result of a special placement carried out by the firm.

    The All-Share-Index also appreciated by 5.91 per cent, adding 1,725.17 to close at 30,927.18 points while the market capitalisation grew by N554 billion or 5.93 per cent to close at N9.893 trillion.

    Meanwhile,bullish sentimentsretained significant stronghold on the market as highlighted by the degree of advanced stocks control over transacted deals, volume and money votes.

    Last week, some stocks attracted more attention from stakeholders. Academy Press was up 57.41 per cent, Sterling Bank down 31.1 per cent, UAC-prop down 28.9 per cent and CCNN down 27.2 per cent. On the flip side John Holt, Unilever and Cutix recorded the largest losses of 21.9 per cent, 5.1 per cent and 5.0 per cent at the close of the week.

    NB had a volatile week, sustained demand led to a strong finish and a 5.3 per cent mark-up at the close of the week. International Breweries, which was also on the up-tick during the week, picked up 8.4 per cent while Guinness recorded a slimmer 0.3 per cent.

    The building materials sector was also in line with sentiments; Dangote Cement bagged 11.1 per cent while Ashaka cement and Lafarge Wapco booked 9.0 per cent and 4.5 per cent.

    A turnover of 3.259 billion shares worth N21.636 billion in 34,651 deals was traded last week in contrast with a total of 2.160 billion shares valued at N16.998 billion that exchanged hands in 31,241 deals.

    The Financial Services sector continued its vibrant dominance in the activity chart, recording the highest trading volume of 2.477 billion shares valued at N15.399 billion in 22,627 deals, representing 76.01 per cent.

    The Conglomerates sector followed with a volume of 423.299 million shares valued at N771.622 million traded in 1,117 deals.

    The Consumer Goods sector was third with 141.525 million shares valued at N3.673 billion traded in 5,671 deals.

    The top three sectors accounted for 3.042 billion shares valued at N19.844 billion traded in 29,415 deals, thus accounting for 93.34 per cent, 91.72 per cent and 84.89 per cent, of the volume, value and number of deals.

    Transnational Corporation of Nigeria Plc of the Diversified Industries subsector was the most active with a volume of 415.970 million units followed by UBA Plc and Diamond Bank Plc. The top three equities with a total volume of 1.022 billion units of shares contributed 31.37 per cent and 20.38 per cent to the total turnover and value for the week.

    Also traded during the week was 565 units of New Gold Exchange Traded Funds (ETFs) valued at N1.440 billion exchanged hands in four deals in contrast to a total of 413 units valued at N1.1042 million transacted last week in five deals. There were no transactions through the stock market in the FGN Bonds, state/local government bonds and corporate bonds/debentures sectors.

     

     

     

     

  • Equities’ return beats analysts’ forecasts

    Equities’ return beats analysts’ forecasts

    Average return at the stock market topped most optimistic estimates by market analysts and pundits as the benchmark index at the Nigerian Stock Exchange (NSE) ramped up to close 2012 with a full-year return of 35.45 per cent.

    The year-end return is about three percentage points above average forecasts by leading investment and securities firms including FSDH Securities, Financial Derivatives Company, GTI Capital, Sterling Capital, Partnership Investment and Cowry Asset Management Limited, among others.

    The All Share Index (ASI), the benchmark index that tracks changes in prices of all quoted companies, closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year.

    Aggregate market capitalisation of quoted equities also rose from its opening value of N6.533 trillion to close the year at N8.974 trillion, indicating capital gains of N2.441 trillion.

    The full year return underlined the attraction of equities as a real-yield instrument. The Monetary Policy Rate, the benchmark interest rate set by the Central Bank of Nigeria (CBN), stands at 12 per cent while inflation rate stands at 11.7 per cent.

    Fixed-income rates showed equities’ return as attractive. Three-month tenor deposit rate of banks stood at 8.69 per cent, 91-day Nigerian Treasury Bill (NTB) carries 12.4 per cent while average monthly prime lending rate stands at 16.48 per cent.

    The bullish rally has re-infused confidence into the stock market. Market value of quoted companies had dwindled by N1.38 trillion in 2011 as uncertainties in the banking sector and monetary tightening policies of the CBN deflated initial optimism that had seen the market with double-digit gain in the early part of the year.

    Aggregate market capitalisation of quoted equities slumped to N6.533 trillion at the end of last trading session for 2011 as against the year’s opening value of N7.914 trillion.

    The ASI fell to 20,730.63 points from its 2011’s value-on-board of 24,770.52 points. Altogether, the benchmark index indicated a negative return of 16.31 per cent, which translated to almost N1.4 trillion loss.

    Market analysts had predicted that the stock market would record full year return of between 27 per cent and 33 per cent.

    Although they had expressed optimisms that the stock market would neutralise intermittent profit-taking dips and expected increase in demand for cash by the year end with upswings from bargain hunting and portfolio rebalancing, the sustained bullish rallies by equities through the yuletide beat analysts’ estimates.

    Analysts at FSDH Securities said they expected the ASI to achieve a growth rate of 25.46 per cent in the second half of the year, thus nudging the full-year return to 32.05 per cent.

    Following the review and expectations of the financial market in the next one year, investment advisors at FSDH were bullish on equities and recommended portfolio allocation of 30 per cent, 10 per cent, 20 per cent, 20 per cent and 20 per cent in favour of equities, fund placement, treasury bills, mutual funds and bonds respectively.

    The performance of the stock market was swelled by impressive bullish run in the third quarter, which scooped N1.4 trillion capital gains to investors during the three-month period.

    The third quarter posted the biggest rally in recent periods with a quarterly return of 20 per cent during the three-month period ended September 30, 2012. Total average year-to-date return then closed the period at 25.47 per cent.

    Aggregate market capitalisation of all equities, which had opened the third quarter at N6.895 trillion, closed the period at N8.282 trillion. This represented an increase of N1.39 trillion. The ASI jumped from its index on board of 21,599.57 points to 26,011.64 points, an increase of 20.43 per cent.

    The market closed the first half with a marginal gain of 4.19 per cent. ASI closed the first half at 21,599.57 points as against its year opening index of 20,730.63 points.

    Aggregate market capitalisation of quoted equities also showed modest increase of 5.54 per cent at N6.895 trillion by June compared with its value on board of N6.533 trillion for the year.

    The market had closed the first quarter with a negative year-to-date return of 0.38 per cent as declines in share prices of highly capitalised stocks overwhelmed the market situation. ASI closed first quarter at 20,652.47 while aggregate market capitalisation of equities closed the first three months at N6.550 trillion.

  • Unitykapital Assurance profit drops to N298m

    Unitykapital Assurance profit drops to N298m

    Unitykapital Assurance Plc has recorded marginal reduction in its profit after tax for the nine-month period ended September 30, 2012.

    A breakdown of the unaudited financial result made available to the public through the Nigerian Stock Exchange (NSE) showed that profit dropped from N376.038 million in 2011 to N298.94 million in the review period.

    Other highlights of the result showed that gross premium earned rose in the three quarters of 2012 to N1.660 billion from N1.583 billion in 2011, while reinsurance cost dropped to N190.750 million from N326.210 million in 2011.

    Net premium earned rose to N1.469 billion from N1.257 billion; Commission earned was N9.672 million as against N4.125 million in the previous year.

    Net claims incurred also rose to N193.846 million from N166.230 million; underwriting expenses stood at N90.513 million from N95.763 million, while underwriting profit stood N847.983 million as against N889.167 million in 2011.

    The underwriting firm had in 2011 financial year paid N130 million to its shareholders, alongside additional bonus shares of 15 new shares for every one held by the shareholders.

    It recorded premium income of over N1.97 billion in 2011, compared with N941 million realised in the last financial year, which ended December 31, 2010.

    Shareholders had commended the turnaround from loss to profitability which has been attributed to the new policy of ‘cautious dynamism’ being implemented by the management under the leadership of the Managing Director, Mr Kins Ekebuike.

  • NSE: Retail bonding trading to boost market liquidity

    The Nigerian Stock Exchange (NSE) will get more liquidity as retail bond trading begins in the first quarter of 2013, operators have said.

    They said the development, coming months after the introduction of the market makers, would enhance the liquidity position of the market.

    According to the operators, the mood of the market has been upbeat following speculations that the Exchange will soon set the tone for the take-off of retail bond trading on its platform early next year.

    Speaking to The Nation, the Managing Director, BGL Securities Limited, Mr Sunday Adebola, said the appointment of Stanbic/IBTC as the government’s stockbroking firm has elicited more confidence in the market.

    He said investors and stockbroking were looking forward to the day bond trading would start at the retail market, adding that the trading platform has been configured to meet this needs.

    He said: “The market is excited about the issue for various reasons. First, operators have a strong confidence in Stanbic/IBTC because of its pedigrees in the country and beyond. Secondly, the bank has strong liquidity position and as such, would not find it difficult to inject enough cash for trading on bonds. Thirdly, the idea will compliment the efforts of market makers that have been trying their best to inject liquidity into the system.”

    According to him, the market is waiting to attract more liquidity from bond trading since many of the market markets have not been able to live up to expectations.

    “Judging from the pulse of the market, expectations are high on the issue of starting bond trading( retail) next year. We are expecting NSE to provide the modus operandi for the commencement of bond trading soon. We are really waiting,” he said.

    Also, a market analyst, Mr Tayo Bello, said the market will record more growth when more flexible and high-yielding instruments, such as bonds are introduced into the market.

    Bello said this would boost market operations throughthe provision of funds.

  • Discos, telcos, others may list on NSE

    Discos, telcos, others may list on NSE

    • Targets $1tr for NSE, says Oteh

    Distribution companies created from the unbundling of the Power Holding Company of Nigeria (PHCN) may be listed on the stock exchange within five years, the Director-General of the Securities and Exchange Commission (SEC), Ms. Arumna Oteh, has said.

    Ms. Oteh, who spoke in an interview in Abuja, said the Nigerian Capital Market is targeting a $1 trillion market value by 2016.

    The government approved bids this year by companies, including Siemens AG (SIE), Korea Electric Power Corporation (KEP) and Transnational Corporation (TRANSCORP) to buy stakes in utilities to curb power cuts which are a daily occurrence.

    Requiring the companies to list shares would make the exchange more representative of the country’s economy, Ms. Oteh said

    The unbundling of PHCN resulted in the creation of 18 successor firms , including 11 electricity distribution companies- Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kano, Port Harcourt, Yola, Kaduna and six generation companies- Geregu, Kainji, Shiroro, Ughelli, Sapele, Afam and the Transmission Company of Nigeria (TCN).

    Ms. Oteh, said only about 17 per cent of Nigeria’s economy is reflected on the market, adding that the Nigerian Stock Exchange (NSE) has attempted to encourage listings and bring bigger trading volumes by introducing short selling, market making and securities lending this year.

    She said the bourse has a current value of $54.6 billion, according to data compiled by Bloomberg.

    She said: “Within a five year period, these companies will be expected to list,” citing discussions with the Bureau of Public Enterprises, which is responsible for the privatisation process. She explained that the development is intended to correct earlier flaws that kept telecom firms from being listed on the NSE. “We cannot make the mistake that we made with telecoms, which were granted cellular licenses in 2001 and weren’t required to list their shares,” she said.

    None of the main four telecommunications companies-Globacom, Airtel, Etisalat and MTN Group Limited. (MTN), are listed on the Nigerian exchange. Ms. Oteh however said the listing was optional, adding, “we are not looking to have listing made compulsory for them now,”

    The SEC’s boss, expressed her desire to have Royal Dutch Shell Plc (RDSA), which is Nigeria’s biggest private oil company, represented on the market, saying it makes “good business sense” for it to be on the bourse. She argued that a little divestment by the oil firms in favour of their host communities could elicit support for the firms, and in the process stem vandalisation of oil pipelines.

    “They need to invest and invest aggressively, so I don’t even agree that there’s sufficient cash flow that they need financing. But more importantly, people can have empathy for these companies. We’ve had vandalisation of pipelines, we’ve had base stations being blown up. If people in those neighborhoods had even one or two shares in these companies, they would protect these base stations or pipelines like hawks,” she stated.

    She said SEC will probably approve rules for Islamic-compliant Sukuk bonds in the first quarter of next year, with a number of Nigerian states, including Osun waiting to issue debt.

    She explained that while states have been selling conventional bonds to finance projects such as infrastructure development, roughly half of Nigeria’s 160 million population who are Muslim are unable to participate.

    “For me it’s a financial inclusion issue, you have a very high population of Muslims in Nigeria and it will just ensure we comply with some of their religious requirements,” she said.

    She said Lagos State, issued N80 billion ($509 million) bond in November at a coupon price of 14.5 percent. Rivers state, in the oil-producing south, may sell a 100 billion-naira bond next year to fund its budget deficit, Standard & Poor’s said .

    Ms. Oteh said three trading groups either have or are about receiving SEC approval to start retail bonds trading next year, to give the general public access to fixed income securities now dominated by institutional buyers. These are the Lagos bourse, the Financial Market Dealers Association, which groups banks, and the National Association of Security Dealers.

    “What we want is that most trading, including over-the- counter, is within our purview,” she said. “We’re very excited because it certainly brings more transparency to the market, it brings more depth,” she stated.

  • FAMAD’s financial crisis deepens

    FAMAD’s financial crisis deepens

    •Director alleges fraud

    The crisis rocking the board of the embattled Footwear and Accessories Manufacturing and Distribution (FAMAD) Plc, formerly BATA, appeared to have escalated as the Vice -Chairman of the company, Mr Chima Emenyonu, has disassociated himself from the audited accounts of the company for the 2002 to 2006 financial years.

    The results are billed to be presented at the company’s Annual General Meeting (AGM) billed for today in Lagos. This is the first time the company will be holding its AGM after it was suspended by the Nigerian Stock Exchange (NSE) in 2008 for failing to submit its audited reports.

    Kelechi alleged that certain information were not reflected in the accounts and he had cause to raise an audit alarm to the auditors over vital information, which were hidden from the board.

    He said petitions against the entire managemeant for fraudulent activities have been sent to the Economic and Financial Crime Commission (EFCC).

    He alleged that many accounts opened in the name of the company are being used for transactions that have no direct relationship with the company.

    The vice chairman alleged that the chairman of the company took up 40 per cent of the holdings of the tottering footwear maker relinquished by the technical partners of BATA Overseas Limited, which she now uses as leverage over minority shareholders.

    Before now, Emenyonu said he had called on the chairman to hold the company’s AGM to clear allegations of fraud levelled against her and the management by some staff members, including the external auditors.

    In a presentation made available to The Nation, Emenyonu alleged that in order to conceal most of the atrocities, the board’s minute book was stolen away and was doctored and returned by the company secretary who refused to give any explanation for the changes.

    “My struggle for justice for all shareholders is animated mainly by the plight of numerous retires and sustained by the support of several shareholders who stand to lose all if the situation is not challenged. Shareholders must insist on full disclosure, and continuation of our current auditors who have been coerced to withdraw, till they have concluded the years 2007-2012 annual account of their era,” Emenyonu said.

    He alleged that the grand plan was to bring in a fresh auditor who will not be able to get any useful information for the balance of six years of the current auditors’ tenure.

  • Capital market needs medium, long-term strategies to sustain recovery, says NSE

    Capital market needs medium, long-term strategies to sustain recovery, says NSE

    • Options coming in 2014

    Introduction and implementation of medium to long-term strategies must remain priorities if the ongoing recovery at the capital market would be sustained.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said while recent market performance showed considerable progress and represented a sign of the returning Nigerian capital market vibrdaancy, there is still a relatively long road ahead of the market.

    According to him, to enable the market to sustain and increase the momentum it has recently experienced, the successful implementation of medium and long-term strategic initiatives by NSE must remain a priority.

    He outlined that the NSE is focused on building local liquidity, exploring the potential of acting as a true regional hub, and looking to attract both local and foreign listings.

    “This focus complements a key trend we are seeing by companies in developed economies looking to tap into rising demand from emerging markets. These companies see the value in building brand recognition through an IPO, on the stock exchanges of their target markets which account for the largest and most-rapidly growing share of their revenue; in our case, Nigeria,” Onyema said.

    Speaking at the Annual General Meeting of the Financial Markets Dealers Association (FMDA) in Lagos, Onyema, however, noted that the last few years have shown the need for portfolio diversification from traditional equities focus by retail investors.

    He said the NSE has demonstrated its drive towards deepening the fixed income market with its planned introduction of a retail bond trading platform.

    According to him, the current over-the-counter (OTC) structure only allows institutional participants trade in bonds; a robust retail bond trading platform will enable retail investors partake in the bond market as well. The new platform will be complementary to the OTC market and will increase the credibility of Nigerian bond market while allowing for improved price efficiency and transparency.

    “The Exchange also has a product roll-out plan of five products in five years. Equities, ETFs and Bonds are presently listed and traded on the floor of the Exchange. Options and Futures are scheduled for launch in 2014 and 2016. Initial market feasibility studies are planned for 2013,” Onyema said.

    He added that the Exchange would next year continue with innovations centered on technology and product development, as well as on increasing investor base and continuing efforts to attract new listings.

    “We will operate best-in-class technology-based solutions, offer advanced market data services, and continue advocating changes to policy, with the aim of transforming the Nigerian capital market into “the gateway to African capital markets,” Onyema said.

    He explained that securities lending and short-selling structure are key to ensuring vibrant market making.

    According to him, major asset holders such as the Asset Management Corporation of Nigeria (AMCON), Pension Fund Administrators, insurance companies and other entities will participate and earn additional income through the process while helping to improve liquidity in the market.

    He said FirstBank of Nigeria and Citibank (Nigeria International Bank Limited) are set to join United Bank for Africa and Stanbic IBTC Bank as securities lenders as part of the market making initiative expected to boost liquidity at the stock market.

    He added that the market makers are committed to ensuring that the objectives of introducing this initiative into the market will be achieved.

    He said that the Nigerian capital market would now be in a better position to provide alternative financing methods for businesses to thrive, thus impacting positively on the nation’s economy.