The Nigerian Stock Exchange (NSE) has opted to reduce the burden of compliance on listed firm, stating the objective of the exchange is not to always issue fine, but provide value for listed firms on the stock exchange.
The Chief Executive Officer, NSE, Oscar Onyema made this known at the 2018 Market Recap and Outlook for 2019 in Lagos on Monday while addressing the number of firms that listed and delisted from the stock exchange.
“We are trying to make sure that we continue to give listed companies value. We recently sent letters to all chief executive officers of firms and encouraged them to engage with us.
“So, we cannot stop a company from leaving if they feel their listing on the Exchange is not in alignment with their business goals. However, we are mindful of the burden of compliance and we are trying to reduce it. We are not interested in issuing fines.”
Meanwhile, the NSE plans to work with the private sector to accelerate the listing of more companies on the exchange.
“As we approached the second quarter, political risks, oil price volatility and rising global yields resulted in bearish sentiments that saw the ASI and equity market capitalisation fall by 17.81 per cent and 13.87 per cent to close at 31,430.50bps and N11.73 trillion, respectively.
“Turnover velocity inched up 0.91 percentage points to 10.25 per cent and likewise, the size of volumes traded in the period increased by 0.96 per cent to 101.43 billion with the Financial Services sector being responsible for the highest traded volume and value.”
2019 market outlook
Consumer spending and Companies’ earnings will experience a positive impact in the second half of 2019, as the stock exchange expect an uptick in the market activity if approval and implementation of the 2019 budget are done swiftly.