Nigeria Content Online

The positive trading recently recorded at the Nigerian Stock
Exchange (NSE) may be reversed following the quarrel between Ndi
Okereke-Onyiuke, director general of the Exchange, and some aggrieved AP
shareholders, some market operators have said.

The exchange has recovered over N278 billion in the last eight
trading days, following the passage of the Asset Management Corporation of
Nigeria (AMCON) bill into law. The last time the Exchange recorded such a
massive sum was early May.

However, some shareholders of African Petroleum have now taken
Ms Okereke-Onyiuke, and businessman, Aliko Dangote, president of the Exchange,
to court over alleged sharp practices in the capital market. Ms Okereke-Onyiuke
is expected to retire in December although there is some doubts whether she
will indeed go by the time as promised last year.

Alleged violation

Meanwhile, Gbenga Emmanuel, a finance analyst at WealthZone
Company, a portfolio management firm, think otherwise. Mr. Emmanuel said the
current market recovery “should not really be affected by the Exchange official
saga because the situation, I think, is presently under control.”

Mr. Emmanuel said the recovery should be sustained following the
recent action of the Exchange on some entities and individuals.

The SEC, on Tuesday, in a statement, said it will take 260
entities and individuals to the Investments and Securities Tribunal (IST) for
alleged violation of the Investments and Securities Act (ISA), 2007. “These
entities and individuals including banks and other capital market operators are
alleged to have been involved in price fixing, share price manipulation, fraud,
and insider trading. These activities are contrary to the provisions of the
Act,” the statement said.

Some market watchers have also charged SEC to make public the
names of those involved in the alleged infringement to further boost investors’
confidence in the market.

Recovery continues

However, at the close of Thursday’s trading, the Exchange’s
market capitalisation gained about N4 billion, or 0.1 per cent, to close at
N6.335 trillion. The All-Share Index was up by 0.1 per cent to close at
25,905.36 basis points, reflecting an increase of 15.38 units.

A total of 34 stocks appreciated in price on Thursday compared
with the 28 recorded on Wednesday, while 39 stocks depreciated as against
Wednesday’s 32. Also on Thursday, the Exchange recorded trading in over 533.615
million quantities of stocks worth N3.520 billion, compared with 324.65 million
stocks on Wednesday, valued at N3.114 billion.

Aiico Insurance, Transnational Corporation, and Tourist Company
were the most traded stocks yesterday, followed by United Bank for Africa and Access
Bank.

A huge investment in Aiico on Thursday made the insurance
subsector surpass banking, usually known for leading the market. The insurance
subsector led the most active subsectors’ chart with 189.213 million quantities
of shares, valued at over N230.384 million. The subsector’s volume was also
boosted by shares of Guaranty Trust Assurance and N.E.M. Insurance; with volume
of Aiico Insurance contributing 87 per cent of the subsector’s volume.

Trading activities in the banking subsector followed, with
157.659 million shares worth N1.228 billion traded. Volume in the subsector was
boosted by deals in shares of banks in the most traded stocks particularly,
Diamond Bank, and Guaranty Trust Bank.

The conglomerates’ subsector was third on Thursday, with over
74.209 million shares valued at N334.917 million exchanged by investors. The
volume in this subsector was driven by trading in shares of Transcorp, UAC, and
Unilever Nigeria.