Money  

Total value of issuance in capital market hit N1.55t in 2017

Securities and Exchange Commission

• Zubair, SEC’s Acting DG assures investors of stability
• AIHN seeks stockbrokers’ access to CBN discount window

The Securities and Exchange Commission (SEC) has announced that the total value of issuances in the capital market as at September 2017 hit N1.55 trillion with equities accounting for 12%.

Also, total equities transactions rose by 78.6 percent to N1.655 trillion between 2016 and September 2017.

According to the Acting Director-General (DG) SEC, Dr Abdul Zubair, total equities transactions rose by 78.6% to N1.655t between 2016 and September 2017. Zubair explained that the market has become more resilient, growing in a steady trajectory in the last one year.

He attributed the improvement witnessed in the market recently to initiatives introduced by the commission and other stakeholders to reposition the market for competitiveness.

He pointed out that SEC was poised to continue to ensure stability and maintain high level of investors’ confidence in the market.

Furthermore, the Acting DG assured the investing public that market operations and regulatory functions would be done in a more orderly and uninterrupted manner to sustain market growth.

“The Commission wishes to assure the investing public and all stakeholders of its commitment to ensuring an uninterrupted and orderly operation of the market and the regulations thereof. In this regard, the role of the press is critical to achieving these objectives.

“ I would therefore enjoin the media to continue to support the Commission in disseminating information about the capital market. Accordingly, the commission is poised to continue to ensure the stability of the Nigerian Capital market.

“We will maintain high level of investor confidence observed in the market.  We are always available to provide clarification on any issue.”

He listed some of the initiatives to include; dematerialisation, direct cash settlement, e-dividend system, national investors protection fund among others.

Meanwhile, the Association of Issuing Houses of Nigeria (AIHN) at the weekend renewed call for the Central Bank of Nigeria (CBN) to grant stockbrokers access to their discount window and improve market liquidity.

The President of the Association, Sonnie Ayere accessibility to CBN‘s discount window would enhance securities lending and market making exercise and ultimately promote price moderation in the market.

He noted that operators are faced significant challenges in funding their businesses, as they cannot easily access the short-term money markets.

Therefore, the operators continued existence and viability of these businesses is significantly threatened.

“The Nigerian capital market essentially operates in silos of its own, cut off from the rest of the financial markets. With regards to our request to the CBN to bridge the liquidity gap in the financial markets by providing liquidity to capital market operators, we were told that the CBN hold-co company structure could be utilised or exploited by CAMMIC to attain the objective of establishing a presence in the money markets. We are very open to exploring this option further

“How long can their businesses survive within the current market structure with no access to wholesale funding.

SEC-only regulated Capital market operators currently operate in ‘silos’ with limited access to the money markets, which provide the base liquidity of all financial markets.Where different parts of the market are concentrated in silos, there are only a handful of institutions that can create, price and trade instruments across the curve hence, the impact on the economy is sub-optimal,” he added.

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