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In the first quarter (Q1) of 2018, NASD reported growth in trading activities on the Over-The-Counter (OTC) market for unlisted securities. The OTC market recorded 112percent increase in value of stocks traded from N1.61 billion in Q1 of 2017 to N3.59 billion in Q1 2018. NASD OTC Securities Exchange continues to play a leading role in transparently creating liquidity for shareholders in securities of unlisted stocks.
Also recorded was 45percent increase in volume of unlisted securities traded from 239.93 million units in Q1 2017 to 351.96 million units in Q1 2018.
Interestingly, in the review Q1’18 period Central Securities Clearing System (CSCS) Plc led the market by volume traded, as investors traded 218 million units of its shares in 180 deals, while Afriland Properties Plc followed as 67 million units of its share were traded in 49 deals.
Central Securities Clearing System Plc led the market by value traded, trading shares worth N1.8 billion, followed by Niger Delta Exploration & Production Plc with transactions worth N1.09 billion.
The NASD OTC market ended the trading week to March 29 2018 with an increase as its Unlisted Securities Index (USI) increased by 0.15percent and closed at 663.82 points as against 662.80 points the preceding trading weekend. Consequently, total market capitalisation gained 0.15percent last week and closed higher at N449.23 billion compared to N448.53 billion the preceding Friday.
The NASD will on Friday April 27, 2018 conduct a first review of all securities on the OTC market. The review is in line with the OTC Securities Exchange efforts to promote transparency in this market.
Last year, NASD OTC Securities Exchange commenced a classification of admitted securities into categories that reflect the level of financial disclosure, adherence to corporate governance standards, dematerialisation of shares and liquidity of the 36 securities trading on the OTC Market. At the end of this exercise, Twelve (12) securities were ranked in the ‘Blue Category’, Eight (8) in the ‘Pink Category’, and Fifteen (15) were in the ‘Red Category’.
“This review will update the categorisation rankings in response to changes in compliance levels. We believe that this service will enhance transparency on the inherent value in such companies, improve levels of investor confidence and also, improve activities on the OTC Market”, NASD noted.
Iheanyi Nwachukwu
