By Michael Eboh
THE Nigerian Stock Exchange has announced its plans to launch a platform for the integration of private placements into the secondary segment of the capital market.
It also announced the completion of its midwife programme and successful launch of the Sierra Leonian Stock Exchange.
This, according to the Director-General of the NSE, Professor (Mrs.) Ndi Okereke-Onyiuke, will help to address the abnormalities prevalent in the conduct of private placements, ensuring that it is properly controlled and is done within the rules, regulations and guidelines of the capital market.
Okereke-Onyiuke, who disclosed this at the press briefing on the NSEâ€™s hosting of African Securities Exchanges Associationâ€™s (ASEA) 2009 conference, noted that the decision to create a platform for private placements on the stock exchange was parts of lessons learnt at one of the conferences of the World Federation of Exchanges (WFE), from one of the member countries â€” Latvia.
She said, â€œWe have concluded plans to launch a platform for private placements. This platform will enable private placement to be integrated to the secondary segment of the capital market. It will be joined to the emerging market segment.
â€œThis will ensure that private placements are controlled effectively and that it abides by the rules and regulation guiding capital market activities.
â€œThis lesson was learned from one of the conferences of the World Federation of Exchanges (WFE) and it underscores the importance and benefit accruing to Nigeria and participants of the forthcoming ASEA conference in Abuja.â€
Okereke-Onyiuke disclosed that the midwife and launch of the Sierra Leone stock exchange, was part of the benefits presented by ASEA, especially in the area of mutual cooperation through various processes, including the exchange of information and assistance in the development of member exchanges.
She said, â€œThe launch of the Sierra Leone stock exchange was done in the same way we did for Ghana. We started the exchange from scratch to finish and it was done free of charge. The NSE trained officials of Sierra Leone exchange, we provided the necessary documents and documentation and all other backing required to ensure the success of the programme.
â€œWe are also, presently, looking for funding to help the Sierra Leonian Stock Exchange in its quest to go electronic. We are hoping to do the same for Liberia soon.â€
Meanwhile, equity value on the Nigerian Stock Exchange (NSE) continued its downward plunge Tuesday, dropping by N36.33 billion.
This was brought about by significant decline in the key performance indices of the NSE. The market capitalisation which opened at N5.040 trillion dropped by 0.72 per cent to close at N5.004 trillion while the All-share index shed 154.01 basis points to close at 21,212.96 points.