SEC, issuers parley to attract more listings as index rises by 0.03%
The Director General of the Securities and Exchange Commission (SEC), Lamido Yuguda has stated that the Securities Issuers Forum (SIF) will create a platform for issuers to brainstorm on how to attract more listings and improve contribution of issuers to the development of the capital market.
Yuguda who stated this in his opening address during the virtual inauguration of Securities Issuers Forum by the SEC, in collaboration with Nigeria Employers Consultative Association (NECA), said the SIF has the potential to act as a bridge between the SEC and issuers.
According to him, it is also expected that with the establishment of SIF, the SEC will be well-positioned to engage issuers on capital raising opportunities that would facilitate increased participation in the market and develop new products to meet the funding needs of the issuers.
The SEC boss said: “The idea of a forum for issuers of securities is not novel as such fora exist in other parts of the world to cater to the interests of issuers of securities in the capital market. In Europe, the European Issuers acts as the voice of issuers of securities representing over 8,000 companies and national associations of issuers of securities.
“In the United States of America and South Africa, the American Securities Association and the Debt Issuers Association respectively serve as the associations for issuers of securities.
“In Nigeria, the Nigeria Employers Consultative Association (NECA) the umbrella body for over 3,000 members seeks to protect the interests and rights of businesses and ultimately influence policy making. By encouraging the establishment of the SIF in collaboration with NECA, the SEC hopes to bridge the gap that exists between the expectations of issuers and the requirements of the regulator.
He pointed out that while forums for issuers are not very common in the African region, they have proven to be a panacea for capital market advancement in the UK, Europe and Asia.
In his remarks, the Director General of NECA, Dr. Timothy Olawale expressed appreciation to the SEC for the inauguration, stating that the event is important to the business community especially coming during the current economic constraints being faced globally.
Meanwhile, the Nigerian equities market yesterday, extended positive sentiments to three consecutive trading sessions as All-Share Index (ASI) appreciated further by 0.03 per cent.
Yesterday’s upturn was due to bargain hunters’ buying interest in both the industrial and banking sectors, as market watchers continued to assess the published first half (H1) performance of some of the companies and await the release of others.
Specifically, the ASI grew by 9.84 absolute points, representing an increase of 0.03 per cent, to close at 38,927.83 points. Similarly, the overall market capitalisation value grew by N5 billion to close at N20.282 trillion.
Analysts at Afrinvest Limited said: “In the next trading session, we expect a positive performance in the market, as investors continue to engage in bargain hunting activities.”
Vetiva Dealings and Brokerage said: “The market witnessed a quiet session with sentiment tilting towards the negative amid mixed corporate results. We anticipate a mixed trading session tomorrow with the possibility of profit-taking in some names that have gained in recent sessions.”
However, the market breadth closed negatively, as 19 stocks depreciated in price while 16 others constituted the gainers’ chart.
Cutix recorded the highest price gain of 10 per cent to close at N5.50 kobo while Veritas Kapital Assurance followed with a gain 8.70 per cent to close at 25 kobo. Tripple Gee & Company went up by 7.78 per cent to close at 97 kobo.
Presco rose by 3.71 per cent to close at N72.60 kobo. Nigerian Aviation Handling Company (NAHCO) gained 2.44 per cent to close at N2.52 kobo.
On the other hand, Sovereign Trust Insurance led the losers’ chart by 7.14 per cent to close at 26 kobo. Regency Alliance Assurance followed with a decline of 6.67 per cent to close at 42 kobo while Unity Bank lost five per cent to close at 57 kobo.
Jaiz Bank lost 4.84 per cent to close at 59 kobo, while Caverton Offshore Support Group shed 4.26 per cent to close at N1.80, per share.
The total volume of trades declined by 10.9 per cent to 206.292 billion units, valued at N1.070 billion, and exchanged in 3,435 deals. Transactions in the shares of Sterling Bank topped the activity chart with 51.826 million shares valued at N78.772 million.
Transnational Corporation of Nigeria (Transcorp) followed with 19.248 million shares worth N18.165 million, while United Bank for Africa (UBA) traded 17.242 million shares valued at N129.782 million.
Wema Bank traded 11.239 million shares valued at N10.008 million, while AIICO Insurance transacted 9.478 million shares worth N8.879 million.
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