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During the first half of year 2005, the Nigerian Stock Exchange (NSE) considered and approved a total of 27 applications for new and supplementary share issues valued at N282.3 billion.
During the first half of year 2005, the Nigerian Stock Exchange (NSE) considered and approved a total of 27 applications for new and supplementary share issues valued at N282.3 billion.
In her half year review of the performance of the stock market released yesterday, the Director General of the Exchange, Dr. (Mrs.) Ndi Okereke-Onyiuke explained that the applicant offered a total of 138.0 billion ordinary shares to the investing public during the half year ended June 30, 2005, in contrast to 16 applications for public offer of 12.13 billion ordinary shares worth N67.37 billion approved by the Exchange in the corresponding period of last year.
Okereke-Onyiuke said that "out of the number of issues approved during the first half of the year, 17 applications to raise N221.6 billion have been concluded."
She also added that the banking subsector dominated the new issues approved during the review period, with 22 issues valued at N270.1 billion approved for the sector.
The Exchange boss further disclosed that two new listings were made in the State Government Bonds sector: The second tranche of the First Ekiti State N1.5 billion Floating Rate Redeemable Revenue Bond 2002/2005 and N6 billion First Akwa Ibom State Floating Rate Redeemable Bond 2005/2007.
Also, she added that three banks - Investment Banking & Trust Company Plc, Plc Fidelity Bank Plc and Diamond Bank Plc were listed during period under review on the Exchange, increasing the number of companies listed in the banking subsector to 37.
She noted that there were 22 supplementary/capitalisation issues during the first half of the year, arising from public offers, rights issues and bonus share issues by quoted companies.
Okereke-Onyiuke recalled that four securities were delisted during the period under review. These included M-Net/Super sports, two Federal Government Development Stocks and N40 million GlaxoSmithKlineBeec-ham Plc's Redeemable Debenture Stock (RDS).
The Director General also announced that the Exchange recorded a turnover of 9.9 billion ordinary shares worth N106.1 billion, in contrast to 10.3 billion ordinary shares worth N126.2 billion recorded in the corresponding period of 2004.
According to her, this included N2.09 billion transactions in the Federal Government Development Stocks and State Government Bond Sectors and N1.3 million turnover in the rights of Crusader Insurance Plc.
She reported that the sale of Federal Government's 783 million ordinary shares in Afribank Nigeria Plc was successfully undertaken through the Exchange between May and June, with 11 stockbroking firms acting on behalf of Bureau of Public Enterprises (BPE) on the transactions.
Meanwhile, Okereke-Onyiuke however said that the value of all the outstanding securities on the Stock Exchange declined by 1.53 per cent to close in June at N2.08 trillion.
She explained that the decline was largely due to price drops in the equities sector, following widespread portfolio reviews elicited by the on-going consolidation in the banking sector.