By Nkiruka Nnorom
THE NASD OTC Securities Exchange Plc has recorded N1.014 billion turnover value for the first quarter, ended March 31, 2017, representing 0.4 per cent increase compared to N1.010 billion turnover value posted in the corresponding period of 2016.
The OTC Exchange also recorded turnover volume of 203.54 million shares, which was up 14 per cent compared to 144.36 million shares traded by investors in the Q1, 2016. Also, 16 per cent share certificate dematrialisation was also recorded in the market during the quarter.
The capitalisation of the NASD OTC market amounted to N427.86 billion at the end of the first quarter, showing a marginal increase of one per cent compared to N423.89 billion in the preceding quarter in 2016. The NASD Unlisted Securities Index (USI) closed the quarter at 632.25 points, reflecting an increase from 626.39 points last quarter.
Commenting on the first quarter performance, Bola Ajomale, Managing Director, NASD, said:”NASD has recorded significant progress in market development activities that will provide a foundation for the growth of the exchange in the course of the year. We also provided enhanced trade support services to our community and ensured quick turnaround time for conflict resolution between service providers and users.”
According to him, NASD offers a deep and liquid market where all capital market participants can execute transactions on unlisted securities and bonds.
Liquidity to investors
He noted that the intention of the OTC Exchange is to stimulate growth by easing the capital raising process and provide liquidity to investors, adding that the OTC market is designed to absorb a wide range of derivatives products and less commoditised instruments that may have difficulty trading on a full stock exchange.
“The underwriting and delivery of new derivative products are accomplished through the mechanism of the OTC market. Although the NASD OTC Market currently deals in unlisted securities and bonds, our predominant concern is with new products that will indeed deepen the Nigerian capital markets and open up hidden value in key sectors of the economy, easing the capital raising process necessary for private enterprises to develop and expand.
As the Nigerian capital markets continues to evolve and respond to the needs of the investment community, NASD OTC seeks to be the first call for capital formation in Nigeria,” he said.