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NSE allays fears over SEC’s probe of market operators

By Michael Eboh & Chinedu Ibeabuchi
The Nigerian Stock Exchange (NSE) has debunked reports that the Securities and Exchange Commission (SEC) has commenced probing the activities of the NSE, CSCS and stockbroking firms for alleged infractions, declaring, instead, that SEC is only conducting a routine inspection of capital market operators.

The Director-General of the NSE, Professor (Mrs.) Ndi Okereke-Onyiuke who disclosed this in Lagos, Monday, noted that SEC’s inspection is similar to that conducted by the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Commission (NDIC) on commercial banks and other financial institutions in the country.

She said, “We want to make it clear that SEC is not probing the NSE, CSCS or stockbroking firms. What SEC is doing presently, is just routine inspection, the same way the CBN and NDIC conduct such inspection on banks and other financial institutions. The inspection by SEC is done on a yearly basis and there is nothing unusual about it. It is only, when SEC, in the course of the inspection, discovers something unusual or questionable, that it conducts a special probe of the individual or firm concerned.”

Speaking further, she disclosed that as parts of efforts to allay the fears of investors, especially as it concerns the ongoing audit of the banks, the Governor of the CBN, Mr. Lamido Sanusi and the new Managing Directors of the five banks whose chief executives were sacked by the CBN a couple of weeks ago, will be meeting with officials of SEC on Wednesday, prior to its meeting with operators in the capital market on the same day.

Meanwhile, the bearish trend in the Nigerian capital market continued, as the key market indicators, the All-share index and market capitalisation, slumped by 0.95 per cent each.

Specifically, the capitalisation which opened at N4.924 trillion depreciated by N46.65 billion to close at N4.877 trillion, while the index dropped by 203.49 basis points to close at 21,279.53 points from 21,483.02 points at which it opened.

The dip in the performance indices was occasioned by losses in the share prices of majority of the listed equities, with Chevron Oil Nigeria Plc recording the highest share price depreciation, dropping by N3.67 to close at N69.96 per share from N73.63 per share, followed by Benue Cement Company Plc shedding N2.07 to close at N40.92 per share and Flour Mills Nigeria Plc shed N1.15 to close at N21.95 per share.

Other share price losers include: Glaxo SmithKline Consumer Plc N0.76, Africa Petroleum Plc N0.68, Union Bank of Nigeria Plc N0.39, Stanbic IBTC Bank Plc N0.34, Nigeria Aviation Handling Company Plc N0.34, First Bank of Nigeria Plc N0.32 and Dangote Flour Mills Plc N0.28 among others.

On the contrary, nineteen stocks recorded share price gains, with Guinness Nigeria Plc leading the pack, appreciating by N0.62 to close at N130.99 per share from N130.37 per share, followed by cement Company of Northern Nigeria Plc with a gain of N0.61 to close at N12.81 per share and PZ Cussons Nigeria Plc garnered N0.39 to close at N20.39 per share.

Equity trading depreciated by 1.33 per cent, as a turnover of 405.71 million shares valued at N2.91 billion was recorded in 4,780 deals, in contrast to the previous day’s trading of 411.18 million shares valued at N3.49 billion in 5,553 deals.
The Banking sub-sector emerged the most active in the sectorial analysis, accounting for 84.11 per cent of the day’s turnover, with 341.26 million shares valued at N2.45 billion in 2,642 deals.

Access Bank Plc emerged as the most patronised with 200.45 million shares valued at N972.46 million in 325 deals, followed by Zenith Bank Plc  exchanging 39.3 million shares valued at N434.86 million in 223 deals and First Bank of Nigeria Plc recorded 31.64 million shares valued at N461.92 million in 743 deals.

The Insurance Sub-sector followed in the sectorial analysis, accounting for 6.7 per cent of the market turnover, with 27.17 million shares valued at N21.45 million in 421 deals. AIICO Insurance Plc recorded the highest transaction in the sub-sector with 8.86 million shares valued at N7.85 million in 156 deals.


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