NSE’s indices slide by N311 billion on JP Morgan’s action

Dealing members record full compliance with Q2 filings
Transactions on the trading floor of the Nigerian Stock Exchange closed on a downward note yesterday, occasioned by price losses suffered by major blue chip companies, causing market capitalization to depreciate by N311 billion.

Yesterday, market capitalisation of listed equities declined by N311 billion or 2.97 per cent to N10.128 trillion from N10.439 trillion traded on Tuesday.

Also, the Nigerian Stock Exchange (NSE) All Share Index (ASI) depreciated by 904.78 basis points to 29454.09 points from 30358.87 points traded the previous day.

Analysts attributed the drop in indices to panic in the market due to JP
Morgan’s announcement to begin the delisting of Nigerian Government bonds from its emerging markets bond Index (GBI-EM) by
September 30.

Investors exchange 459.458 million shares worth N4.267 billion in 3396 deals against 226.648 million shares valued at N1.999 billion in 4531 deals.

An analysis of the trading activities showed that Guinness Nigeria Plc led gainers table, appreciating by N6.26 kobo to close at N131.48 kobo, Fidson Healthcare followed with a gain of N0.16 kobo to close at N3.36 kobo, NAHCO increased by N0.14 kobo to close at N4.45 kobo, Transnational Corporation of Nigeria grew by N0.10 kobo to close at N1.21 kobo while Okomu Oil rose by N0.07 kobo to close at N25.90 kobo.

On the contrary, Nestle Nigeria Plc topped losers table dropping by N18.00 to close at N802.00, Mobil Nigeria Plc trailed to N7.50 kobo to close at N142.50 kobo while Dangote Cement fell by N6.94 kobo to close at N163.06. Other companies that recorded price depreciation were Nigerian Breweries and UAC of Nigeria, which shed N4.87 kobo and N1.70 kobo respectively to close at N123.18 kobo and N32.30 kobo.

Diamond Bank of banking sub sector led activities in volume terms, trading 141.330 million shares valued N487.658 million, Zenith bank exchanged 95.028 million shares worth N1.612 billion, United Bank for Africa (UBA) sold 42.874 million shares valued at N175.671 million. Access Bank traded 36.219 million shares valued at N175.475 million and GTbank sold a total of 26.002 million shares worth N605.468 million.

Meanwhile NSE has recorded a 100 per cent compliance rate with the dealing member regulatory filings for the second quarter renditions for the period ended 30 June 2015, which was due on 17 August 2015.

According to NSE, the attainment bodes well with the Exchange’s implementation of its zero tolerance policy for infractions as all active dealing members of the Exchange are expected to submit their returns within the required timelines.

The Chief Executive Officer of the NSE, Oscar Onyema, said t the approach is key to developing a strong and sustainable capital market.

He added that the achievement was a reflection of the Exchange’s collaborative approach to regulation, with a strong emphasis on relationship management within an ethical problem-solving prism.

“This milestone is underpinned by dealing members buy-in to the Exchange’s vision to be the foremost securities exchange in Africa driven by regulation, efficiency, liquidity and innovation. The Exchange is keenly aware of the burden of regulation on the dealing member community and therefore they deserve the kudos of their high sense of compliance despite the challenging times.”

He further said: “this landmark achievement serves to remind us, not only that we have come a long way in our journey to transform the Nigerian capital market but also that our great hopes and aspirations for this market are not a pipe dream no matter how daunting the challenges ahead of us.”

The NSE being a self-regulatory organization maintains a body of rules to regulate the admission and supervision of its Dealing Members to enforce compliance with financial and operational requirements and the continuous monitoring and surveillance of their trade operations.