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NSE Gross Income Hits N2.6bn

Posted by By Jerome Ushakang and Eromosele Abiodun on 2005/08/05 | Views: 390 |

NSE Gross Income Hits N2.6bn


The Nigerian Stock Exchange (NSE) has recorded a gross income of N2.6 billion for the financial year ended December 31, 2004.

The Nigerian Stock Exchange (NSE) has recorded a gross income of N2.6 billion for the financial year ended December 31, 2004.

This is in contrast to a total of N882 million recorded in year 2003.

The President of the Nigerian Stock Exchange (NSE), Dr. Raymond C. Obieri who announced the result at the 44th Annual General Meeting (AGM) of the Exchange held in Lagos said the increase in income during the year under review was mainly due to growth in the number and quantum of issues in the year.

Also, the Exchange made an operating surplus of N145.3 million compared with N34.1 million in 2003. He said that in view of the government’s reform programme, the continued privatisation and diversification of their revenue base will continue to record better operating surplus in the year ahead.

Speaking on the performance of the NSE during the year, he disclosed that a total of 12 billion shares valued at N125.1 billion were traded on the Exchange by the end of July, as against 12 billion shares worth N148.8 billion recorded in the comparable period of 2004.

According to him, activities in the secondary market were affected by the widespread portfolio reviews elicited by the on-going consolidation in the banking subsector. As a result, he noted further that the all-share index which closed at 23,844.45 in December 2004, had by July 29, 2005 shed some points to bring the year-to-date depreciation to 8.1 per cent, while the market capitalisation which opened at N2.1 trillion closed slightly higher at N2.2 trillion.

He said three new banks, Diamond Bank Plc, Fidelity Bank Plc and Investment Banking and Trust Company Plc (IBTC) were admitted to the Daily Official List, in addition to the listing of the second tranche of the first Ekiti State N1.5 billion Floating Rate Redeemable Revenue Bond 2002/2005, N6 billion First Akwa Ibom State Floating Rate Redeemable Bond 2005/2007, and 11.5 per cent and N20.5 billion second Federal Government of Nigeria Bond 2008 series one.

Obieri stated that the Exchange delisted the First Yobe State Floating Rate Redeemable Bond 2002/2005. He said the delisting followed confirmation of full redemption of the issue by the trustees.

The president disclosed that activities in the primary market were impressive, adding that as at July this year, the Council approved a total of 33 applications for the issuance of 168.3 billion shares valued at N526 billion, in contrast to 16 applications for the offer of 12.13 billion shares worth N67.37 billion approved in the corresponding period of last year.

He said the banking subsector dominated the new issues approved during the period with 27 issues worth N368.8 billion approved for the sector.

Obieri predicted that the outlook for the rest of the year is bright as the fund raising phase in the banking consolidation will wind up by the third quarter to allow envisaged mergers and acquisitions in the subsector to be finalized.





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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.