On Monday, 23 June 2014, The Nigerian Stock Exchange (The Exchange) published a notice of its intention to delist 24 listed companies from its Daily Official List, arising from their non-compliance with provisions of the Listings Rules of The Exchange and pursuant to Clause 15 of the General Undertaking.
The Securities and Exchange Commission (SEC) gave capital market operators a deadline of 31st December for shoring up their capital base. This has lead to a spate of activity and mulling over M&A options for various capital market operators in a bid to meet the much higher capital requirements.
The Nigerian stock market has been declining nearly every day for the past few weeks, and this trend doesn’t seem to be stopping any time soon. There are several factors behind the fall of the stock market, and the main one is the drop in global crude oil prices.
Nigeria is back on track towards achieving its full economic potential. Nigerian Gross Domestic Product (GDP) at purchasing power parity (PPP) stood at $170 billion in 2000. In an interview in February 2013, the Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said with the Nigerian economy growing at an average of seven per cent annually, the planned rebasing of the GDP by the National Bureau of Statistics (NBS) is expected to increase the country's GDP to $600 billion by 2016.
In our previous report, dated October 16th 2014, we firmly advised RETAIL/ORDINARY INVESTORS to be unusually cautious they were advised to either hold their cash or design a long term approach towards investing in equities. Since then, (15DAYS after) market has plunged by -12.58%, trading at 34,000bpts. Once again, we would like to re-sound it that no one can say or predict how deep down this market may go but it is clear that the correction is gaining stronger momentum day-by-day.
Further to the landmark development by the Nigerian capital market regulators to encourage indigenous firms to list their shares on The Exchange, the first listing on the Alternative Securities Market (ASeM), the shares of Omoluabi Savings & Loans Plc was concluded on Tuesday November 4, 2013 on the Daily Official List (DOL) of The Nigerian Stock Exchange (NSE).
Nigerian Capital Market in the first month of Q414 sustained the negative sentiment witnessed and experienced in Q3 as market regulators and operators continue to roll out and implement principles, rules, innovations and market products which will contribute to the further growth of the market.
The NSEASI has become the laggard of the three leading stock markets in sub-Saharan Africa (SSA). It fell yesterday for the eighth successive trading session, and its ytd losses are now close to double-digit.
The outlook for Nigerian Stock Market in Q4’14 remains blurred as the bearish trend gained tempo at the end of Q3’14, starting the month of October into Q4’14 with active sell-down. In the last three quarters, we have seen mixed and unimpressive performance trend in the market as YTD remains in negative zone with falling enthusiasm.