Mkt Operators raise alarm on declaration of dividend, but non-audited results by coys
Peter OBIORA
Proshare NI
July 01, 2009 16:09 GMT
Capital Market Operators has raised an alarm on only the declaration of dividends and bonuses but not audited results by some quoted companies on the Floor of the Nigerian Stock Exchange (NSE).
One of the Market Operator who is a Stockbroker with one of the popular Stockbroking firms’ name (withheld) confirmed to Proshare NI today in Lagos Nigeria that the issue of the NSE allowing companies to release only their dividends and bonuses without their full results calls for corporate action.
“I do not understand the reason companies would release only their proposed dividends and bonuses to the Exchange without making available their full audited results” the Stockbroker said.
He also affirmed that this calls for corporate action on the part of the Stock Exchange.
The Stockbroker asserts that it is when the Audited results are made available that investors would be able to make their investments decisions.
He cited the examples with Trans-Nationwide Express Plc (Tranex) which released its proposed dividend to investors today Wednesday July 01 2009 on the Floor of the NSE and Regency Alliance Insurance Company Plc (Regalins) that also released its proposed dividend payout and bonus to investors of the company also today on the Floor of the Exchange; without their full audited results.
This is coming on the heels of earlier reports by Proshare NI that Twenty five (25%) of listed companies on the Floor of the Stock Exchange have been reported to be non-complaint in the declaration of its Annual Reports and Accounts.
This number in the schedule of quoted firms and compliance with submission of Annual Reports to the Stock Exchange was reported by Proshare Analyst Services Unit.
The report confirmed that one of the companies that declared its dividend today on the Stock exchange Regency Alliance Insurance has not declared their results for the past one (1) year.
As earlier reported, Sola Oni, Assistant General Manager (AGM) Market Operations/Information Technology had in a telephone chat with Proshare NI affirmed that the Management of the Stock Exchange are doing everything possible to ensure that quoted companies declare their results as at when due.
He also affirmed that the schedule of quoted firms reported by Proshare that are yet to comply with post listing requirements of declaring results prompt and regularly may include list of delisted companies.
However, as at the time of filling in this report, Proshare NI is yet to clarify the issue with the authorities of the Stock Exchange.
