The council of the Nigerian Stock Exchange (NSE) approved the delisting of 64 securities during the year ended December 2009. The Director General, The NSE, Prof. Ndi Okereke-Onyiuke, gave the revelation last week during the 2009 review of the capital market performance for the year 2009.
“The Council of the NSE approved the delisting of nine dormant companies following the expiration of time given the companies to regularise their status with the Exchange. The decision was effected on Wednesday, May 13, 2009,” she said.
According to Onyiuke, the companies affected by the delisting included; Ferdinand Oil Mills Plc; Footwear Accessories Manufacturing and Distribution Plc; BCN Plc; Chrislieb Plc; Epic Dynamics Plc; Liz Olofin and Company; Oluwa Glass Company Plc and Asaba Textile Mills Plc. Also delisted were; 53 fixed income securities on account of maturity including six FGN Development Stocks; Four State Government Bonds; 41 Industrial Loans and Two Preference Stocks.
Others removed from the Daily Official List of the NSE included; Universal Trust Bank Plc, following its acquisition by Union Bank of Nigeria Plc., Nigerian International Debt Fund Plc delisted from the equity section and granted Memorandum Listing status on December 15, 2009.
Onyiuke also said that the Nigerian Capital Market like every other market maintain cycles, adding that the bearish run noticed in the market for some times is part of the market cycle.
She said that the NSE sustained the cycle of boom for a period of 47 years, stressing that it was only in 2009 that cycle of doom started. She noted that the doom period has stopped because the year 2010 will bring the lost glory in the market.
According to her, investors should cash in on the low prices of stocks and take position in the stocks of their choice. She said that stocks have gone below their book value. However, she advised investors not to run amuck trying to borrowing money in order to invest in stocks. She noted that very soon foreign and local investors would start flooding the Exchange again chasing stock in readiness for the boom times.
“Despite price declines and the shunning of risky investments, foreign investors continued to demonstrate confidence in the Nigerian economy during the year. Following modest recoveries in their home markets, some of our erstwhile foreign investors returned while new ones sought opportunities considering the key attribute of high returns, liquidity and safety of investments,” she said.
Onyiuke observed that despite the global recession, the Nigerian capital market remained attractive to foreign investors and portfolio managers seeking cheap equities and high-yielding bonds. She added that interim statistics show purchases (inflow) by foreign investors during 2009 to be in excess of N214.741 billion, representing 31.32 per cent of the aggregate turnover which is an increase when compared with the N153.457 billion recorded in 2008. She said that currently, total sales (outflow) during the year were in excess N195.583 billion, culminating in a net inflow of N19.158 billion, a reversal of the net outflow of N480.5 billion in 2008.
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