Saturday, June 13, 2015 11.05 PM / NASD OTC
Two leading OTC market Participating Institutions: Stanbic IBTC Stockbrokers Limited and BGL Securities Limited swapped 127,184,030 units of FrieslandCampina WAMCO Nigeria Plc equity.
Implications of this are numerous and significant.
• This is the largest trade by volume ever done on the OTC market – up 17% on the previous largest transaction (108million units of IGI in January 2015).
• By value (₦40 billion) this is certainly the biggest trade on the NASD OTC market in its 24 month history.
• By block, this represents almost 80% of dematerialised shares in WAMCO.
• In pricing, the deal was done at the prevailing market price of ₦315.67 per share indicating that the OTC market price was acceptable to by both buying and selling investor.
ACTIVITY INTENSIFIES ON THE NASD OTC MARKET
On the back of the SEC rule on Trading Unlisted Securities that was released in April 2015, NASD OTC has seen a remarkable shift in various levels of activity on the market.
• Dematerialisation levels changed from 2.3% on 31 March 2015 to y% as at this Friday
• The market has for the first time in its young history seen unbroken trading for 30 days.
• Trades have been executed in 90% of securities admitted to the platform.
• Investor and Issuer interest is gathering momentum also. NASD OTC will add Fumman and LBIC in week 25 2015. (the first time we will add two securities in one week).
• Six brokers have been cleared to commence operation on the OTC market (see segment below) and we expect more Custodians and Pension funds to commence activity on the market shortly.
NASD intends to create liquidity in the nation’s capital market and introduce transparency to the over the counter market. As more participants join the market in various roles this is becoming a reality.
SIX PARTICIPATING INSTITUTIONS JOIN THE NASD OTC MARKET
NASD is pleased to announce that six (6) Participating institutions have been granted access to operate on the NASD OTC market. Participating institutions are stockbroking firms and Issuing houses that have applied for license to trade or introduce securities on the OTC market. These firms have undertaken to always operate in the best interest of their client and abide by the rules of the NASD OTC Market.
The companies who have been admitted to operate on the market are
This brings the total number of participants on the OTC market to 97 broker /dealers and 25 Issuing houses
TOP 5 TRADING SECURITIES 2015 (YTD- 12 June 2015)
PI ACTIVITY – 2015
There were dramatic changes to the leader board on the NASD OTC. Stanbic and BGL in their unprecedented swap of ₦ 40 billion worth of Wamco have established a wide margin on other Participants. BGL re-enters the league in the 2nd position while cardinal stone enters the league in the 9th position.
TOP 15 PARTICIPATING INSTITUTION ON NASD OTC MARKET