NASD OTC Market CAP Increased By 0.01% WoW to Close At N518.99bn

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Saturday, July 25, 2020  07:30 AM / by NASD Plc/ Header Image Credit: NASD 


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NASD Plc Announces the Appointment of Mr. Kyari Abba Bukar as Independent Non-Executive Director

 

NASD PLC (the Company) is pleased to announce the appointment of Mr. Kyari Abba Bukar as an Independent Non-Executive Director on its Board.

 

Mr. Kyari Bukar is a consummate professional with over 30 years' experience in information technology, financial services and business analytics. Mr. Bukar holds a B.Sc. degree in Physics from Ahmadu Bello University, Zaria, Nigeria and an M.Sc. degree in Nuclear Engineering from Oregon State University, USA. He is an alumnus of the Lagos Business School (LBS), Wharton Business School and Harvard Business School, USA.  His started his career at Hewlett Packard, California, USA, where he grew through the ranks to become the Technical Marketing Programme Manager. On his return to Nigeria, he joined FSB International Bank (now Fidelity Bank) and served in various roles including Executive Director, e-Banking IT and Operations.

 

He served as the Managing Director/Chief Executive officer of the Central Securities Clearing System PLC where he is credited with the company's transformation. He also served as MD/CEO of Unified Payments System Limited (formerly Valucard Nigeria PLC) where he spearheaded the Company's complete reorganization, transforming the company into one of the most secure, technologically advanced and profitable payments processors in Nigeria. He was the Chairman of the Nigerian Economic Summit Group and currently serves as; an Independent Non-Executive Director on the Board of Standard Chartered Bank Nigeria, the Chairman of Sunu Assurances Nigeria PLC and CRC Credit Bureau Limited among others.

 

We trust that he would make significant contribution to the Company in his role as Independent Non-Executive Director and we welcome him onboard.

 

Following the above changes, the Board of NASD PLC now comprises the following Directors:

Name    Designation

Mr. Olutola Mobolurin    Chairman

Mr. Chike Nwanze    Vice-Chairman

Mr. Bola Ajomale    Managing Director

Mr. Oladipo Aina    Non-Executive Director

Mr. Ariyo Olushekun    Non-Executive Director

Mr. Kayode Falowo    Non-Executive Director

Mr. Abubakar Lawal    Non-Executive Director

Ms. Oby Ugboma    Non-Executive Director

Mr. Samuel Nwanze    Non-Executive Director

Mr. Aigbovbioise Aig-Imoukhuede    Non-Executive Director

Mr. Kyari Bukar    Independent Non-Executive Director

 

Valuation and Pricing: The Damodaran's view

 

While the place of Investors sentiments and biases is constantly being avoided in the valuation of Stocks by Investment analyst, it is important to understand what the value of a stock is, why it is so important to be able to properly value a stock and the consequent effect of this on pricing in the Industry.

 

Valuation and the danger of following the crowd

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They must know something that I don't - why this can be misleading

 

Why is pricing any different from valuation? Does the price of an item not reflect the value of the item? Well, not always. The value of a stock lies in its intrinsic value which is reflected loudly in the figures of the Company's financial statement. It is the future cash flows from a Security discounted to the present value. This would include all future dividends including the future cash flow that is to emanate from selling that stock, discounted to their present value. Why then could an Investor be misled?

 

An Investor's initial valuation of a Company that is unfamiliar is often less subjective, but what happens when the value derived is far from what the market is saying, ignoring the activity of Information bias and the imperfection of an underdeveloped markets? The Investor like the doubting lemming in the diagram above is now faced with the option of either following the crowd and giving in to the pressure from the Market or holding on to the value in his valuation. The price of an item is the value awarded to that item by the crowd. This can sometimes be misleading! The pressure to be in tune with the market could affect assumptions and estimates in valuation which would in turn affect an Analyst value for a Company or its Stock since Valuation is a craft; you get better by constantly doing it as you almost can't master it.

 

Valuation and the distraction from noises in Financial Statements

 

When valuing a company, your attention as an Analyst should be on the Future Cashflow that holding its Stock would produce. Take for example a company that has had a negative cash flow for more than three years, this is mostly found in Startups. You as an Investor should logically not pay a dime for such a Stock, but if this is the case, the very essence of valuation which is to determine the possible future cash flow that could be generated from an asset or Stock is ignored.

 

The attention on value which is defined as the future cash flow that would arise from the ownership of a stock or an asset has caused certain financial statement items to be treated differently from the traditional accounting method to communicate the possible value that would emanate from such items and their treatments. Examples of such items are Research and Development, Lease expense, licenses, and a strong brand name among others.

 

Paying attention to value rather than price would also influence your treatment of both operating and Financial synergy in Mergers and Acquisition. The value of anything derives from the value of cash flow that can be generated out of it.

 

NASD OTC Securities Exchange constantly believes in a transparent market where the value of stocks is reflected in the pricing of stocks. We do this by making timely information available and equally accessible to everyone on the exchange.

 

Year-to-Date Overview

 

NASD OTC Securities Exchange Market closed on a positive note YTD as the market recorded an increase in performance. NASD Security Index Year to date return rose by 1.29%. Total volume traded Year-to-Date stands at   7,816,017,067 units in 862 deals and total Value traded is N 10,395,372,679.02.


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Week 30 Overview

 

NASD OTC Securities Exchange closed the week with a positive return onn NSI. The NSI return rose by 0.01% to close the week at 706.52 points against 706.44 points in the preceding Friday, July 17 2020.

 

In addition, Week 30 saw NASD Investors gain N0.06 Billion in value. NASD OTC Market capitalization closed at N518.99 Billion compared to N518.93 Billion in the preceding Friday, resulting from a positive movement of prices.


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There was a -95.99% decrease in the total value traded during the week as week 30 saw NASD Investors trade a total of N7,921,583.50 in value compared to N197,475,303.50 in the previous week. Total trade activity for the year is valued at N 10,395,372,679.02.

 

In the same pattern, volume traded during the week was  99,970 units compared to   7,758,327 units in the previous week leading to a -98.71% decrease in trade volume compared to week 29. Total volume traded for the year is   7,816,017,067 units.


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Top Traded Securities by Volume

 

The week closed with FrieslandCamoina Wamco Nigeria Plc ranking top among five most traded securities by volume and Afriland Properties Plc as the fifth most traded stock by volume in week 30.


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Top Traded Securities by Values

 

The week closed with FrieslandCampina Wamco Nigeria Plc ranking top among top five most traded securities by value and UBN Properties Plc stood as the fifth most traded Security by Value for the week.

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Advancers for the week

 

One of NASD OTC stocks closed the week with a positive movement in the price. FrieslandCampina Wamco Nigeria Plc, which currently holds a Market Capitalization of N118.28 Billion closes the week at N121.15 representing a 0.12 percent increase from the previous close of N121.


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Decliners for the Week

 

One of NASD OTC Stocks closed the week with negative movement in prices. Nigeria Mortgage Refinance Company Plc which currently holds a Market Capitalization of N1.23 Billion closes the week at N5.82 representing a -6.88 percent decrease from the previous close of N6.25.


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