IPF Rules Approval to Promote Investors’ Confidence

The Nigerian Stock Exchange has approved rules to govern the Investor Protection Fund (IPF). The Chief Executive Officer, NSE, Mr. Oscar Onyema, who disclosed this, said the move would enable the Board of IPF to commence work, which will boost investor confidence. The IPF, a World Bank-funded scheme aimed at boosting confidence in the equities market, is meant to provide compensation to investors who are defrauded.

Nigerian Bonds: FMDQ, Bloomberg Debut New Trading Platform

The Bloomberg E-Bond trading and market surveillance system, a new electronic trading system for Nigerian government bonds, have been launched by Bloomberg and FMDQ OTC Plc. Trading under FMDQ’s over-the-counter (OTC) market securities exchange, the system seeks to add transparency, liquidity and efficiency to Nigeria’s growing fixed income market. “A well-functioning debt market needs an efficient technical infrastructure, bespoke trading rules, market surveillance and straight-through processing.

Market indicators Appreciate marginally

The equities section of the Nigerian Stock Exchange on Monday closed higher, although slightly, with the foremost indicators edging higher.

The NSE All Share Index rose by 0.01% to close at 39,564.43 basis points in contrast to a 1.73% appreciation on Friday, which saw it leap from 38,885.93 points to 39,558.89 points. Also, the market capitalisation of the listed equities scaled from 0.01% to 1.73%.

CIS - Private Trading Floor will Improve Stockbroking

The Chartered Institute of Stockbrokers (CIS) has said the construction of a private trading floor in Lagos will promote professional stockbroking in the country. The Institute said this when members of its council, led by the President, Mr. Ariyo Olushekun, visited the 150 seat multipurpose private trading floor built by GTI Securities in Lagos.

The emergence of the trading floor, which is designed to allow brokers and dealers trade on the Nigerian Stock Exchange will allow stockbrokers to practice as professionals ‘in their own right.’

West African Market Integration Commences

West African Capital Market Integration programme, which is linked to the West African Monetary Institute, was established in 2001 by the heads of state in the West African Monetary Zone. It has organised a series of workshops, signaling the inauguration of the planned integration of capital markets in West Africa.

According to the Chairman, WACMIC, Mr. Oscar Onyema, the market integration will take place in three phases.

First Equity Exchange Traded Fund Gets Endorsed

An ETF is an investment vehicle traded on a stock exchange, much like shares. Many ETFs are passively managed index funds which normally track an index, with their main objective being to participate in the economic growth of an industry, sector or commodity. ETFs provide the attraction of the returns of a traditional tracker fund (like unit trusts) with the liquidity of a listed security.

SEC Moves to Stop States’ Clamor for Bonds

 The plans of state governments hurrying to sell bonds before next year’s election are being threatened as the Securities and Exchange Commission tighten the requirements for issuing debt, according to Bloomberg. Federal officials are reluctant to approve sales as the February 2015 voting period approaches, said Ms Arunma Oteh, the Director-General, SEC, in a January 15 interview in Abuja. “As you come close to an election, we become tougher on the requirements for states to come to market,” Oteh . “I don’t know how many of them will cross the hurdle this year.”

Business Confidence Level Drops in Q4-2013

Aggregate BCI
The 4th quarter 2013 aggregate Business Confidence Index (BCI) moderated to 17.6% from 24% it posted in Q3. This represents 6.4% point drop of the index over Q3 and Q4, 2013. The index had maintained a steady improvement over the first three quarters of the year (10.5% in Q1, 16.5% in Q2 and 24% in Q3). The moderation of the BCI score at this time suggests that business leaders are likely going to be softer towards expanding their investments in Nigeria in the months to come.

Wema Bank Raises N40bn Capital

Wema Bank Plc revealed that it has concluded its N40bn special placing and successive allotment of shares and approval by the Securities and Exchange Commission (SEC). With this authorization, an aggregate of 26,667,123,333 ordinary shares of 50k each valued at N40,000,684,999.50 were allotted to successful institution and private investors at N1.50k. per share in two tranches. . This development is said to have raised the bank’s paid-up capital above the brink for a National Banking License.

Global Shares Rally as Bond Yields Fall

World shares rose and bond yields fell on Thursday, a day after the United States Federal Reserve unexpectedly held back on trimming its massive stimulus programme.

Reuters reported that the Fed announced its decision before the close of US markets on Wednesday, sending Wall Street to new highs. While Wall Street’s major indexes showed little follow-through on Thursday, markets that were closed at the time of the statement – including those in Europe and Asia – surged.