Nigerian Stock Exchange. 6 market makers emerge.
October 8th, 2008 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
As part of the ongoing efforts to ensure that the nations capital market bounces back, the Nigerian Stock Exchange has approved 6 banks to act as market makers.
The banks include Zenith Bank plc, Intercontinental Bank plc, Union Bank plc, GT Bank plc, UBA and First Bank plc.It is expected that the sum of N100 billion will be provided by each of the banks in the form of a stabilization fund as they are also allowed to buy back their own shares.
According to SEC, the new rule on market makers was created with a view to allow specialists act as dealers in the market. The requirement to act as a market maker is that the company must be a duly registered company with a minimum paid up capital of N2 billion.
Some other stipulated rules by which the market makers would play by include to serve as a source of market information for designated securities. They are also to ensure conducive trading atmosphere and market stability by ensuring continuous liquidity and by synchronizing buy and sell transactions.
A market maker is also expected to have the capacity for continuous 2-way quotes in the relevant stocks throughout the trading session in a minimum quote size of 100,000 units of shares.
(No Ratings Yet)
Loading ...
This is great and a great vision and plan towards a solution to bounce bank the nigeria stock market,but how sure is it that not only this appionted bank would benefit.
THE CURRENT PRICE AND VALUATION DEPRESSION HAS PUT US IN A STATE OF CONFUSION. INDEED,SEC HAS DONE ALOT FOR THE MARKET. BUT THE UNCERTAINTY SURROUNDING THE POLITICAL MARKETPLACE OF THE EXCHANGE HAS DONE MORE DAMAGE THAN GOOD. THERE IS NOT WE CAN DO FOR NOW THAT WOULD REBOUND THE MARKET. LETS WAIT TILL THE USA CONDUCTS HER ELECTION IN NOVEMBER AND OUR ELECTION COURT CASE FACING THE TOP SEAT OF POWER IS DECIDED. REMEMBER, PRUDENT INVESTORS HAVE SAFTY OF AND RETURN ON INVESTMENT AS THEIR MAIN OBJECTIVE IN SECURITIES MARKET. WE SHOULD PRAY FOR THE YA-MAN TO WIN AND BO-MAN TO WIN TOO! JUST MY VIEW, MARKET WATCHERS.
IN ADDITION TO THE ABOVE COMMENT, THE TABBLE BELOW SHOWS A QUARTERLY MOVEMENT OF STOCK PRICES ON THE EXCHANGE. IT COULD BE OBSERVE THAT STOCK PRICES WITNESSED PROLONG DEPRESSION FROM 1997-1999 FOLLOWING THE KICK-AND-START POLITICAL TRANSITION PROCESS THAT FINALLY BROUGHT US TODAY’S DEMOCRACY.
Year 1st
Quarter 2nd Quarter 3rd Quarter 4th Quarter
1985 2.15 3.65 0.34 8.8
1986 10.6 5.51 7.49 8.48
1987 -1.28 17.99 26.39 -1.09
1988 2.41 7.63 12.5 7.35
1989 9.97 3.27 8.87 15.77
1990 9.44 19.5 22.47 10.83
1991 16.97 17.02 71.66 9.96
1992 7.16 7.41 18.77 14.27
1993 2.07 6.04 2.56 29.13
1994 16.13 11.88 4.29 15.2
1995 15.7 50.71 56.67 9.17
1996 3.42 11.94 13.99 13.86
1997 22.44 9.87 -17.01 -16.16
1998 -2.2 -8.31 -5.57 -2.12
1999 -3.82 11.19 -7.99 6.47
2000 13.29 8.58 19.74 9.7
2001 12.93 19.14 1.2 6.14
2002 2.29 17057 2.83 -1.54
2003 11.48 6.56 17.14 30.49
2004 13.75 16.49 -21.28 4.86
2005 -13.26 -1.8 14.68 -2.23
2006 -3.11 10.37 31.16 0.28
2007 30.93 26.02 0.6 15.31
2008 8.84 -14.78 -17.4 ON-GOING
Well my attention is export market and inflation. Anything within the curve is a one way ticket out of the export market. At least these 6 banks are holding banks and have execised curb talent in ‘options’ and they are weighted. He might be looking at justifiable rates…possible a quarter of a percentage.
Soludo is not looking at derivitives…which might suggest that he has a grip on the matter…but he should not forget that value is functional as price but price is not value in any market. He should attempt a hands off approach else the money is nothing else than government stock acquisition. Europe is on this dope…but in meaning we can suggest that thier government is manipulating price, but that’s seem thier only way out.
You see you cannot never put amount in terms of GBI…or put a time limit on options