Stockbrokers suspend plans to boycott trading


November 24, 2005/Source The Punch




The Chartered Institute of Stockbrokers has suspended their decision to shut down the stock market on Monday November 28, 2005. The CIS, which is the professional body for stockbrokers who trade on shares on behalf of investors on the Nigeria Stock Exchange, had threatened to boycott trading and ensure that no trading takes place on Monday if the NSE failed to rescind its decision to make the subscription to the Trade Alert compulsory for all investors.

However, a statement by Head of Corporate Affairs, CIS on Thursday, Mrs. Adetoro Akinkuolie, said that the stockbrokers had suspended the planned boycott.

According to her, the suspension stemmed from entreaties from well meaning senior citizens and institutions who have intervened in the matter and are making effort to find a lasting solution to it.

“In the light of the these developments and based on the Institute’s avowed interest and commitment to protect the investing public both within and outside the country, CIS has decided to suspend the boycott, with the hope that the other parties involved in the matter will reciprocate,” Akinkuolie said.

Meanwhile, the Central Bank of Nigeria has given its pre-merger consent to NorthOmega Bank, which comprised Bank of the North, Omegabank Plc, NUB International Bank, New Africa Bank Plc, Trans International Bank Plc and Fountain Trust Bank.

The merger partners in a statement issued on their behalf by BON’s Head, Corporate Affairs, Mr. Baffa Mohammed, on Wednesday, said that the approval letters were sent to the chief executives of the merging banks on Tuesday by the CBN.

The consent came barley 37 days to the expiration of the Central Bank of Nigeria’s deadline for the conclusion of all consolidation arrangements for banks’ to meet the N25billion re-capitalisation deadline.

According to Mohammed, a joint technical working committee of the merging banks has been set up to finalise details of the arrangements as a prelude for the groups application for the CBN’s Approval-In- Principle.

The new bank is expected to start business with shareholders’ funds in excess of N30billion and a network of about 200 branches nationwide.

NorthOmega is a mixed grill of operators with diverse backgrounds and expertise in niche markets and the merger is expected to create an entity, with national spread, franchise in consumer banking and e-banking products.

Meanwhile, In another development, the new Managing Director of BON, Mr. Ahmed Ibrahim, assumed duties on Monday at the bank’s Kano head office.

This follows the formal handing over of the bank’s management by former managing director, Mr. Bashir Bugaje, whose notice of resignation expired last week.

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