BY NKIRUKA NNOROM
Quoted companies on the Nigerian Stock Exchange, NSE, will not be allowed to announce fresh dividend payment, bonuses or engage in mergers in the next three weeks.
According to a notice obtained from the NSE’s website, there will also not be market actions like splits, rights issues and listing.
The NSE stated that it took the decision to suspend these corporate actions to allow seamless migration of its data from the old trading engine to the new one.
The notice reads, “Please be informed that the Nigerian Stock Exchange will be migrating data from its current trading platform –Horizon- to the new trading platform -X-GEN. Consequently, new market actions such as Splits, Dividends, Rights Issues, Mergers, Bonuses and Listings will be suspended until the successful migration.
The suspension, which took effect weekend and ends on October 7th, 2013, will not affect on-going corporate actions, the NSE assured.
The new trading engine, whose cost is put at $10 million (about 1.5 billion), will strengthen trading activities on the Exchange when fully operational, according to the NSE’s CEO, Mr. Oscar Onyema. He stated that the new trading engine, which is described as the fastest trading engine in Africa, was part of efforts by the NSE to enable the Nigerian emerging market align with 21st century technology and give it the foundation to join leading exchanges in building scale, scope and efficiency.
According to him, X-Gen symbolises NSE’s untiring commitment to delivering a first rate technology platform that will enable dealing members build and grow their businesses while the investing public will experience a more efficient market when they buy or sell securities.