Investors' confidence in the Federal Government of Nigeria's (FGN) bonds has been growing in the last 10 months.
Between January and October, total transactions on FGN Bonds through the Over-The-Counter (OTC) market were 15 billion units valued at N15.95 trillion in 109,588 deals. This represents about 83 per cent increase in volume against the comparable period of 2008 when transactions on the OTC market for the FGN Bonds were 8.21 billion units worth N8.22 trillion in 66,650 deals.
On the other hand, activities at the equity market dipped by 51 per cent in the last 10 months comparable same period in 2008. Total turnover of 85.94 billion shares worth N582 billion was recorded, against the 175.5 billion units valued at N2.3 trillion in the comparable period during 2008.
OPERATORS CAUSED STOCK CRASH - OTEH
The crash witnessed in the shares of companies listed on the Nigerian Stock Exchange (NSE) was as a result of the recklessness and failure of those responsible for the day to day running of the Exchange, Acting Director General and President Umaru Musa Yar’adua’s nominee for the Securities and Exchange Commission (SEC) Ms Arunma Oteh has said.
Ms Oteh, who spoke yesterday at the National Assembly during her confirmation hearing by the Senate Committee on Capital Market said, “Operators of the Exchange have broken the trust between them and Investors, and we need to restore confidence in the sector.
We have to punish those who malpractice on the stock exchange and deepen the capital market, have risk management, revamp our regulation, disclosure and enforcement.”
President Umaru Musa Yar’adua had in July approved the nomination of Ms Arunma Oteh as Director-General of the Securities & Exchange Commission (SEC) along with that of Mr. Ahmed Remi Makele who was named Executive Commissioner (Legal & Compliance).
REPS, NSE DIFFER ON DEMATERIALISATION BILL
AS part of measures to reposition the Nigerian capital market, the Director-General of the Nigerian Stock Exchange (NSE), Professor Ndi Okereke-Onyiuke yesterday, said a dematerialisation bill aimed at converting share certificates to electronic form has been sent to the National Assembly (NASS) for consideration.
The NSE DG stated this while welcoming the Committee of House of Representatives on capital market, which was at the NSE to deliberate on how to curtail the crisis in the market.
But the Chairman, House Committee, Aliyu Wadada, denied knowledge of such bill in the House, adding that neither he nor any of his colleagues is aware of the bill.
Wadada also warned that a bill of that nature would likely not sail through if the committee was not notified by the House.
He told stockbrokers that the House would do everything within its power to stabilise the market, just as it would work in consonance with the NSE to ensure that the bill receives adequate attention since it is the responsibility of the committee to make sure that the market rebounds.
Dematerialisation is a process whereby a shareholder will no longer be issued a physical certificate as an evidence of share ownership in a company.
Its implementation is expected to forestall problems of stolen share certificate, delay in verification of certificate before investors would offload his/her holding in a company in instance of share price appreciation among other benefits.
She noted that the bill when passed would make the print out of CSCS on share statement a valid document of law, adding that it would also help in the dematerialisation drive.
The NSE boss further disclosed that CSCS, which was 100 per cent owned by the NSE is no longer a subsidiary of NSE.
She explained that that NSE's equity holding in the outfit has been reduced to 30 per cent following the private placement embarked upon earlier in the year.
"CSCS is now an affiliate company of NSE not a subsidiary. NSE used to own 51 per cent of CSCS shares, but now divested to 30 per cent, which made them become a core shareholder."
Starcomms records 60 per cent growth in third quarter
STARCOMMS Plc recently announced its results for nine months, ending September 30, 2009.
The company said that within the period, it recorded an increase in its active subscriber base with about 60 per cent amounting to 2.466 million.
Starcomms explained that while subscribers churn reduced to 0.90 per cent per month, revenues grew by five per cent to N25.6 billion against N24.3billion recorded in 2008.
Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 305 per cent to N6.7 billion as against N1.6 billion in 2008 "as a result of higher revenues and operational efficiencies."
Explaining further, Starcomms said, "operating profit moved into positive territory, being N603, 692 million for the nine-month period, from a negative N2, 421 billion for the same period in 2008."
A statement said Interest expense rose in the third quarter to N555.3 million, while unrealised foreign exchange losses, because of the decline in the value of the Naira, contributed to a loss before taxation of N1.114 billion for the quarter.
"Because the Foreign Exchange loss is unrealised, should the Naira appreciate from its current position, part of the loss could be reversed.
Between January and October, total transactions on FGN Bonds through the Over-The-Counter (OTC) market were 15 billion units valued at N15.95 trillion in 109,588 deals. This represents about 83 per cent increase in volume against the comparable period of 2008 when transactions on the OTC market for the FGN Bonds were 8.21 billion units worth N8.22 trillion in 66,650 deals.
On the other hand, activities at the equity market dipped by 51 per cent in the last 10 months comparable same period in 2008. Total turnover of 85.94 billion shares worth N582 billion was recorded, against the 175.5 billion units valued at N2.3 trillion in the comparable period during 2008.
OPERATORS CAUSED STOCK CRASH - OTEH
The crash witnessed in the shares of companies listed on the Nigerian Stock Exchange (NSE) was as a result of the recklessness and failure of those responsible for the day to day running of the Exchange, Acting Director General and President Umaru Musa Yar’adua’s nominee for the Securities and Exchange Commission (SEC) Ms Arunma Oteh has said.
Ms Oteh, who spoke yesterday at the National Assembly during her confirmation hearing by the Senate Committee on Capital Market said, “Operators of the Exchange have broken the trust between them and Investors, and we need to restore confidence in the sector.
We have to punish those who malpractice on the stock exchange and deepen the capital market, have risk management, revamp our regulation, disclosure and enforcement.”
President Umaru Musa Yar’adua had in July approved the nomination of Ms Arunma Oteh as Director-General of the Securities & Exchange Commission (SEC) along with that of Mr. Ahmed Remi Makele who was named Executive Commissioner (Legal & Compliance).
REPS, NSE DIFFER ON DEMATERIALISATION BILL
AS part of measures to reposition the Nigerian capital market, the Director-General of the Nigerian Stock Exchange (NSE), Professor Ndi Okereke-Onyiuke yesterday, said a dematerialisation bill aimed at converting share certificates to electronic form has been sent to the National Assembly (NASS) for consideration.
The NSE DG stated this while welcoming the Committee of House of Representatives on capital market, which was at the NSE to deliberate on how to curtail the crisis in the market.
But the Chairman, House Committee, Aliyu Wadada, denied knowledge of such bill in the House, adding that neither he nor any of his colleagues is aware of the bill.
Wadada also warned that a bill of that nature would likely not sail through if the committee was not notified by the House.
He told stockbrokers that the House would do everything within its power to stabilise the market, just as it would work in consonance with the NSE to ensure that the bill receives adequate attention since it is the responsibility of the committee to make sure that the market rebounds.
Dematerialisation is a process whereby a shareholder will no longer be issued a physical certificate as an evidence of share ownership in a company.
Its implementation is expected to forestall problems of stolen share certificate, delay in verification of certificate before investors would offload his/her holding in a company in instance of share price appreciation among other benefits.
She noted that the bill when passed would make the print out of CSCS on share statement a valid document of law, adding that it would also help in the dematerialisation drive.
The NSE boss further disclosed that CSCS, which was 100 per cent owned by the NSE is no longer a subsidiary of NSE.
She explained that that NSE's equity holding in the outfit has been reduced to 30 per cent following the private placement embarked upon earlier in the year.
"CSCS is now an affiliate company of NSE not a subsidiary. NSE used to own 51 per cent of CSCS shares, but now divested to 30 per cent, which made them become a core shareholder."
Starcomms records 60 per cent growth in third quarter
STARCOMMS Plc recently announced its results for nine months, ending September 30, 2009.
The company said that within the period, it recorded an increase in its active subscriber base with about 60 per cent amounting to 2.466 million.
Starcomms explained that while subscribers churn reduced to 0.90 per cent per month, revenues grew by five per cent to N25.6 billion against N24.3billion recorded in 2008.
Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 305 per cent to N6.7 billion as against N1.6 billion in 2008 "as a result of higher revenues and operational efficiencies."
Explaining further, Starcomms said, "operating profit moved into positive territory, being N603, 692 million for the nine-month period, from a negative N2, 421 billion for the same period in 2008."
A statement said Interest expense rose in the third quarter to N555.3 million, while unrealised foreign exchange losses, because of the decline in the value of the Naira, contributed to a loss before taxation of N1.114 billion for the quarter.
"Because the Foreign Exchange loss is unrealised, should the Naira appreciate from its current position, part of the loss could be reversed.
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