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Value of transactions on NASD OTC hits N2billion

By on December 17, 2014

The value of trading on the NASD OTC market  last week hit N2 billion,    three months after it  hit N2 billion. The NASD OTC is licensed platform for the trading of unlisted securities. Prior to 2013, holders of securities of public companies not listed on the Nigerian Stock Exchange (NSE) found it difficult to trade those securities. However, the commencement of trading by NASD Plc in July 1, 2013 put an end to that difficulty. One year after it stated operations, the NASD OTC facilitated the exchange of  unlisted securities valued at N648 million. That value grew to N2 billion last September and rose further to hit N2 billion last Friday.

According to NASD Plc, the  N2 billion mark is a cumulative effect of and increasing preference investors have for transparency and participating institutions(PIs) recognition of the liquidity the market affords.

“This number is significant because it represents deals that hitherto would not have been captured by Securities and Exchange Commission (SEC), tax authorities, economic planners and analysts.   The NASD OTC market is therefore creating an opportunity for both institutional and individual investors to accept and use the same data and get a clearer perspective of our investment terrain,” NASD said.

The platform said it recognised the indispensable contributions of PIs, registrars, custodians and all other operators who have started the development of this market.

“Some PIs contributed directly by trading through the system and a great many have been invaluable in testing, fine tuning and advertising the market.  We appreciate all players in the OTC market and look forward to more liquidity and transparency in the OTC market in Nigeria,” NASD said.

Some of the companies listed on the NASD OTC are: Golden Capital Plc, Acorn Petroleum Plc,Dufil Prima Foods Plc,Trustbond Mortgage Bank Plc, Central Securities Clearing System (CSCS) Plc, Riggs Ventures West African Plc, Afriland Properties Plc,Arm Life Plc,Partnership Investment Company Plc, Resourcery Plc, Jaiz Bank Plc, BGL Plc, Swap Technologies and Telecomms Plc, GEO-Fluids Plc, Niger Delta Exploration and Production Plc, Industrial and General Insurance Plc, Friesland Campina WAMCO Nigeria Plc and Food Concepts Plc.

When NASD Plc commenced operations in 2013, its managing director, Mr. Bola Ajomale, said the platform would offer investors the opportunity to buy and sell non-listed securities in an organised and transparent market as well as provide liquidity for shares not listed on NSE.

“We will open up with equities and bonds, many of which are currently being traded on the black or grey market in the first phase. NASD Plc would play a crucial role in sustaining the real growth of the economy by offering more liquidity in investment instrument to the nation’s capital market,” he had said.

 

[ThisDay]