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The
market capitalisation of equities at the Nigerian Stock Exchange (NSE),
on Wednesday, recovered, ending the four trading days of negative trend.

The
NSE market capitalisation of the 201 First-Tier equities closed
yesterday at N8.53 trillion after opening the day at N8.44 trillion,
reflecting 1.03 per cent increase or over N87 billion gains. About N165
billion was lost in the last four trading days. However, some market
watchers have asked investors to trade cautiously.

The
number of gainers after Wednesday trading session closed higher at 23
stocks compared to the 18 on Tuesday, while losers closed lower at 33
stocks as against the 39 recorded the previous day.

Prestige
Assurance and Dangote Cement topped the price gainers’ table with an
increase of 4.95 per cent and 4.92 per cent, to close at N2.12 and
N128.00 per share. On the flip side, Livestock Feeds and Scoa Nigeria
led the price losers’ chart with a loss of five per cent and 4.95 per
cent, to close at 57 kobo and N7.87 per share.

The
Banking subsector led the most active subsectors’ chart with 169.301
million volumes of shares, valued at over N1.392 billion. Volume in the
subsector was driven by Zenith Bank, Sterling Bank, and Oceanic Bank.

Trading
activities in the Insurance subsector followed with 12.003 million
shares valued at N11.587 million. Deals in shares of Aiico Insurance,
NEM Insurance, and Lasaco Assurance boosted volume in this subsector.

New rules for the Exchange

Meanwhile,
the Securities and Exchange Commission (SEC), in a statement on
Tuesday, said it has enacted some new rules and amended some of its old
rules and regulations.

“Pursuant
to section 313(6) of the Investments and Securities Act, 2007, the
following new rules are made by the commission: rules on negotiated
settlement; conditions to grant waiver on bonds that are not backed by
an irrevocable letter of authority; custodial services for registered
collective investment schemes; securities lending and borrowing;
Exchange Traded Funds,” the commission said.

It also said that the rules and amendments became effective January 27, 2011.

It
noted that other sundry amendments include Islamic fund management,
payment of dividends, and investment in unlisted equities.

However,
SEC said it has approved the implementation of a new code of corporate
governance for quoted companies. It added that the code will become
effective from April 1.

An
executive member of the Shareholders Association of Nigeria, David
Amaechi, said the rules on payment of dividends “is one rule that will
benefit investors in the capital market.”

The
new rule stated that “a separate interest yielding escrow account shall
be opened pursuant to these rules and regulations by a company within
24 hours of the approval of dividend. The total dividend declared by
the company shall be paid en-bloc into the said account within 24 hours
after the opening of the account. The registrar shall be responsible
for effecting dividend payment within the time limit prescribed.

“The registrar shall forward a monthly statement of account
certified by the bank to the commission. Failure to open and fully fund
the account by the company shall attract a penalty of N1 million per
day and a further penalty of five per cent above the monetary policy
rate on the amount declared.”