Following the difficulties and complaints associated with the dispatch of share certificates to investors, the Securities and Exchange Commission and Nigerian Stock Exchange (NSE) has given December 31st, 2008 as the deadline for the total phase out of the issuance of share certificates to the investing public.

This decision which was reached at a stakeholders meeting between SEC, NSE, Central Bank of Nigeria (CBN) and other capital market operators in Lagos on Thursday seek to replace the old share certificates with electronic system of share holding in the Central Securities Clearing System (CSCS), the central depository of the NSE.

Shareholders were advised to begin the demobilisation of the share certificates into the CSCS system before the end of the deadline. “All Initial Public Offers (IPO), Rights issues and bonus certificates are to be issued electronically to CSCS accounts of subscribers. This is to avoid delays and inconveniences associated with certificate verification by registrars. It is also to enhance tradability of share instruments and market liquidity,” it was resolved.  

The regulators and operators agreed that the CBN capital verification for banks will be done after the conclusion of the allotment process and that only suspicious accounts will be affected by the verification while the CSCS account of those not affected will be credited with the units allotted within 15 working days from the date of allotment clearance from SEC.

Meanwhile, the performance indicators of the Nigerian Stock Exchange (NSE), the All-share index and market capitalisation both dropped last week by 0.36 per cent and 1.28 per cent respectively. Specifically, the index which opened at 52,452.49 points dropped by 188.38 points to close at 52,264.11 points while the capitalisation closed at N8.23 trillion from N8.34 trillion at which it opened.

Ashaka Cement Plc recorded the highest share price loss for the week under review, dropping by N5.06 to close at N48.99 per share from N54.05 per share at which it opened, followed by First Bank of Nigeria Plc with a loss of N3.80 to close at N40.20 per share while Benue Cement Company Plc dipped by N3.24 to close at N42.61 per share.

Conversely, Chevron Oil Nigeria Plc recorded the highest share price appreciation, rising by N12.68 to close at N156.00 per share from N143.32 per share at which it opened, followed by Total Nigeria Plc with a gain of N12.27 to close at N164.27 per share and African Petroleum Plc garnered N8.91 to close at N71.91 per share. 
 
A dip was recorded in trading for the week under review, as a turnover of 2.3 billion shares valued at N31 billion was recorded in 57,524 deals, dropping by 4.17 per cent from penultimate week’s turnover of 2.4 billion shares valued at N33.91 billion in 54,620 deals.

The Banking sub-sector emerged the most active in the sectoral analysis, accounting for 44.78 per cent of the market turnover with 1.03 billion shares valued at N20.67 billion in 32,139 deals. Turnover in the sub-sector was driven by investors’ interest in First Inland Bank Plc, exchanging 218.26 million shares valued at N2.71 billion in 1,495 deals, followed by Sterling Bank Plc with a turnover of 108.64 million shares valued at N866.49 million in 1,835 deals and Skye Bank Plc recorded 76.62 million shares valued at N1.04 billion in 1,067 deals.