| Nigerian Stock Exchange | |
|---|---|
| Formation | 1960 |
| Purpose/focus | Support trading on stocks |
| Headquarters | Lagos, Nigeria |
| Official languages | English |
| Website | http://www.nse.com.ng |
The Nigerian Stock Exchange (NSE) was established in 1960 as the Lagos Stock Exchange. As of December 31, 2012, it has about 198 listed companies with a total market capitalization of about N8.9 trillion ($57 billion). All listings are included in the Nigerian Stock Exchange All Shares index.
Contents |
History [edit]
The Nigerian Stock Exchange was founded in 1960 as the Lagos Stock Exchange.[1] It started operations in Lagos in 1961 with 19 securities listed for trading. In December 1977 it became known as The Nigerian Stock Exchange, with branches established in some of the major commercial cities of the country.
The NSE continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness. With about 200 companies and 258 Securities listed, The Exchange operates fair, orderly and transparent markets that bring together the best of African enterprises and the local and global investor communities. The Nigerian Stock Exchange is poised to champion the acceleration of Africa's economic development and to become “the Gateway to African Markets”.[1]
Operation [edit]
The NSE is regulated by the Securities and Exchange Commission, which has the mandate of Surveillance over the exchange to forestall breaches of market rules and to deter and detect unfair manipulations and trading practices.[2] The Exchange has an automated trading System. Data on listed companies' performances are published daily, weekly, monthly, quarterly and annually.
The Nigerian Stock Exchange has been operating an Automated Trading System (ATS) since April 27, 1999, with dealers trading through a network of computers connected to a server. The ATS has facility for remote trading and surveillance. Consequently, many of our dealing members trade online from their offices in Lagos and from all the thirteen branches across the country. The Exchange is in the process of establishing more branches for online real time trading. Trading on The Exchange starts at 9.30 a.m. every business day and closes at 2.30 p.m.
In order to encourage foreign investment into Nigeria, the government has abolished legislation preventing the flow of foreign capital into the country. This has allowed foreign brokers to enlist as dealers on the Nigerian Stock Exchange, and investors of any nationality are free to invest. Nigerian companies are also allowed multiple and cross border listings on foreign markets.
Pricing [edit]
The Nigerian Capital Market was deregulated in 1993. Consequently, prices of new issues are determined by issuing houses and stockbrokers, while on the secondary market prices are made by stockbrokers only. The market/quote prices, along with the All-Share Index plus NSE 30 and Sector Indices, are published daily in The Stock Exchange Daily Official List, The Nigerian Stock Exchange CAPNET (an intranet facility), our website (http://www.nse.com.ng), newspapers, and on the stock market page of the Reuters Electronic Contributor System. Our on-line code in the Reuters Network is NSXA-B.
Regulation [edit]
The NSE is regulated by the Securities and Exchange Commission, which has the mandate of Surveillance over the exchange to forestall breaches of market rules and to deter and detect unfair manipulations and trading practices.[3] The exchange has an automated trading System. Data on listed companies' performances are published daily, weekly, monthly, quarterly and annually.
Transactions on The Exchange are regulated by The Nigerian Stock Exchange, as a self-regulatory organization (SRO), and the Securities & Exchange Commission (SEC) – apex regulator, which administers the Investments & Securities Act of 1999.
[edit]
The Exchange maintains an All-Share Index formulated in January 1984 (January 3, 1984 = 100). Only common stocks (ordinary shares) are included in the computation of the index. The index is value-weighted and is computed daily. The highest value of 66,371.20 was recorded on March 3, 2008. Also, The Exchange has introduced the NSE-30 Index, which is a sample-based capitalization-weighted index plus four sectorial indices. Similarly, four sectorial indices have been introduced to complement existing indices. These are NSE-Food/Beverages Index, (Later renamed NSE – Consumer Goods Index) NSE Banking Index, NSE Insurance Index and NSE Oil/Gas Index.[3]
Associations [edit]
The Nigerian Exchange is an affiliate member of the World Federation of Exchanges (FIBV). It is also an observer at meetings of International Organization of Securities Commissions (IOSCO), and a foundation member of the African Stock Exchanges Association (ASEA). The NSE is regulated by the Securities and Exchange Commission, which has the mandate of Surveillance over the exchange to forestall breaches of market rules and to deter and detect unfair manipulations and trading practices.[3] The exchange has an automated trading System. Data on listed companies' performances are published daily, weekly, monthly, quarterly and annually.
Council [edit]
The National Council is the governing body of The Nigerian Stock Exchange. Currently, the National Council has of eighteen members: eleven individual ordinary members and seven dealing members. The National Council directs The Nigerian Stock Exchange's business and financial affairs, strategy, structures and policies; monitors the exercise of any delegated authority; and deals with challenges and issues relating to corporate governance, corporate social responsibility and corporate ethics. The new council members of The NSE are
Alhaji Aliko Dangote, GCON - President
Mr. Oscar Onyema - Chief Executive Officer
Mr. Aigboje Aig-Imoukhuede - Ordinary Member
Mr. Abubakar Mahmoud, SAN - Ordinary Member
Mr. Abimbola Ogunbanjo - Ordinary Member
Mrs. Yemisi Ayeni - Institutional Member
Partnership Investment Company Limited (Represented by Mr. Victor Ogiemwonyi) - Dealing Member
Reward Investment and Services Limited (Represented by Mr. Henry Olayemi) - Dealing Member
WSTC Financial Services Limited (Represented by Mr. Tofarati Agusto) - Dealing Member
APT Securities and Funds Limited (Represented by Alhaji Garba Kurfi) - Dealing Member
City-Code Trust & Investment Limited (Represented by Mr Ebilate Mac-Yoroki) - Dealing Member
ICON Stockbrokers Limited (Represented by Mr. Chike Nwanze) - Dealing Member
Stanbic IBTC Stockbrokers Limited (Represented by Mr. Oladele Sotubo) - Dealing Member
See also [edit]
References [edit]
- ^ a b "The Stock Exchange". Nigerian Stock Exchange. Retrieved 2012-06-08.
- ^ "What We Do". SEC Nigeria. Retrieved 2011-06-08.
- ^ "All-Share Index". NSE. Retrieved 2012-06-09.
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