The Nigerian Stock Exchange (NSE) has concluded arrangements to increase the number of stocks that market makers make from the initial list of 16 stocks that the programme commenced with on September 18, 2012 with additional nine stocks.
Effective Thursday, October 4, 2012, the following stocks were added to the Market Making programme: Access Bank; Academy Press; Custodian & Allied Insurance; First Bank Plc; Dangote Sugar Plc; Union Bank Plc, NASCON and Nestle Nigeria Plc as well as AIICO Insurance Plc.
"This development is in line with the promise made by The Exchange that all the stocks quoted on the Exchange that are trading above par value will be added to the Market Making programme over a period of six months.
Chief Executive Officer of NSE, Oscar Onyema had last month assured all stakeholders that the introduction of Market Making would help drive liquidity in the marketplace to the benefit of Retail Investors, Institutional Investors, the Broker Dealer Community as well as Regulators. He also said that it will improve the price discovery process and thus reflect the true value of companies.
"I believe you will agree with me that the market is in for better times with the introduction of the Market Making, Securities Lending and Short Selling initiatives. Let us collectively give it all the support it needs, especially during the six month rollout period".
NSE had kick-started the programme on September 18 with PZ Cussons Nigeria Plc; Nigerian Bag Manufacturing Company Plc; Presco Plc; International Breweries; Lafarge Wapco; Fidson Healthcare Plc; Redstar Express Plc; Zenith Bank Plc; Sterling Bank Plc; D.N.Meyer; Diamond Bank; FCMB; Fidelity Bank Plc; Nigerian Breweries Plc; Guaranty Trust Bank Plc and UAC Nigeria Plc. (UACN).
Source: Daily Trust