By Michael Eboh
As part of moves towards stemming the declining fortune of the Nigerian capital market, the Nigerian Stock Exchange, NSE, has said that it will appoint market makers from among the top 10 stock-broking firms in the market.
The NSE also said that plans have reached an advanced stage to coalesce some sectors, as parts of efforts to restructure the Daily Official List, making them buoyant and in line with the growth objective of the NSE.
Mr. Oscar Onyema, Chief Executive Officer of the NSE, who stated this during a meeting with Chief Executives of stock-broking firms in Lagos, Thursday, said that the market makers, when appointed, will help drive activities in the equities market, which has been suffering significant declines within the last few months.
A source at the meeting, who pleaded anonymity, disclosed that major volume movers in the market will be the criteria used in appointing the market makers.
He noted that the NSE informed brokers that the market makers would be expected to stem the downward trend in the market and engender liquidity in the trading of equities.
He further stated that the NSE hinted of plans to amend the process of Inter-member transfer of Investor’s shareholding accounts, making it easy for investors to move their accounts from one stock broking firm to another.
According to the source, the NSE allayed the fears of stakeholders in the market, saying that the state of the Nigerian equities market was not unconnected with the activities of the global market which was affected by the on-going debt crisis in Europe.
He continued further that the NSE informed dealing members that it was putting measures in place towards increasing investors’ confidence and participation in the market especially by the creation of alternative investment vehicle, such as the Exchange Tradable Funds.