Dealing members on the floor of the Nigerian Stock Exchange have called for the conclusion of the ongoing audit of banks and the announcement of status in just one last batch rather than having it in two batches as planned by the Central Bank of Nigeria (CBN).

Their fear was premised on the ripple effects of the last announcement on the capital market and the attendant panic it created in the financial industry. The brokers, at their meeting held on the floor of the Exchange last week, noted that it would be better to bear the blow of one last audit once and for all rather than having it extended into two more batches.

The apex bank had just announced the results of 10 banks audited, out of which, five were said to be in “grave danger” and their chief executives booted out.

The first trading day after the official announcement by the CBN, 17 August 2009 saw a huge dumping of shares at the capital market, with the two market indicators dropping sharply by 2.38 per cent. Many stocks closed on heavy offer for the first day, reflecting panic dumping, For instance, Zenith Bank closed on 14.9 million offer, Access Bank 19.5 million, UBA 9.9 million, Skye Bank 5.2 million, and Bank PHB 31 million. This came despite the placement of full suspension on the affected banks. The massive dumping also affected other sectors with a general massive offers experienced. For instance, an insurance stock, Universal Insurance, on the same day, closed with a 44 million offer.

The Director-General of the Exchange, Prof. Ndi Okereke-Onyiuke, said the action of CBN, though in the interest of all stakeholders, has dealt a huge blow on the capital market. According to her, investor confidence would be shaken while the market capitalization would come down. She, however, noted that it would be a short setback for the market, adding that the market would benefit from it in the long run. She supported the brokers’ stand on having the exercise concluded in the next batch, considering its impact on the market.