Stocks end lower on waning supply

• IOSCO publishes credible deterrence report 

NIGERIAN Stock Exchange (NSE) All Share Index (ASI) depreciated by 0.05 per cent to close at 333,460.50 basis points yesterday against the 0.37 per cent depreciation recorded previously as the equities market again closed on a negative.

The Year-to-Date (YTD) returns stand at -3.45 per cent while market breadth also closed negative, as Nascon led 24gainers against 28losers, topped by Vono at the end of the session – an unimproved performance compared with previous outlook.

However, market turnover closed positive as volume moved up by 5.69 per cent against the 12.97 per cent decline recorded in the previous session. Ecobank, Zenith Bank and UBA were the most active to boost market turnover, with Guinness and Ecobank topping the market value list.

Volume shockers included International Breweries, which led active stocks that recorded impressive volume spike at the end of the session.

Meanwhile, the International Organisation of Securities Commissions (IOSCO) has published a report on Credible Deterrence, which identifies key enforcement factors that may deter misconduct in international securities and investment markets.

The report draws on the collective experience and expertise of IOSCO members and was produced by IOSCO’s Committee on Enforcement and Exchange of Information, chaired by the UK Financial Conduct Authority (FCA). It identifies key elements in the prevention of misconduct and financial crime from a range of international regulatory authorities and encourages regulators operating in both emerging and developed markets to consider integrating credible deterrence into new or existing enforcement strategies.

“This is an important contribution to our global efforts to crack down on financial misconduct and rebuild and strengthen financial systems post-crisis,” the report noted.

“This is not an assessment tool but a think piece to encourage and support securities regulators around the world to consider how they can build effective credible deterrence strategies.”

Credible Deterrence is a key component of any effective enforcement strategy and deterrence is credible when would-be wrongdoers perceive that the risks of engaging in misconduct outweigh the rewards, and non-compliant attitudes and behaviours are discouraged.

Deterrence occurs when persons contemplating engaging in misconduct are dissuaded from it by an expectation of detection, which will be rigorously investigated, prosecuted and punished with robust and proportionate sanctions.

Nevertheless, the report cautions that Credible Deterrence is not a one-size-fits-all, therefore, regulators must decide its meaning in the context of their strategic objectives, powers and responsibilities.