NSE: Listing More Companies Restores Investors’ Confidence

Following the listing of some new companies on the floor of the Nigerian Stock Exchange (NSE), market operators are of the view that listing of more companies at a bearish period would deepen activities at the market and restore investors’ confidence.

This development, according to them, would lead to investors having variety of choices of equities to diversify their portfolios.

Speaking on the heels of recent listing of some companies on the exchange and the proposed listing of many others, Mr Funmi Abiodun, a broker with Supra Investment Limited, said the development was a good omen for the market.

He added that having many stocks coming to list especially at a bearish period like this would improve investor’s confidence in the market.

Mr Adelaja Emmanuel, a broker with Cordros Capital Limited, noted that “an increase in listed companies would reduce the concentration risk in the nation’s capital”, observing that it would lead to improvement in the variety and depth of securities traded in the market.

He noted that the fear of their shares value being eroded had made most qualified companies to shy away from listing their shares.

Adeija further noted that with confidence gradually returning to the market and with the recent auditing of the banking sector there is hope for an improvement in the market.

He pointed out that the problem with the market is liquidity and he foresees the market going back to the bullish before the end of the first quarter of 2010.

A market analyst said that more listing of companies is a good development to the market. He urge the companies that are ready to list to do so, saying that this would boost the market confidence level, advising them not to wait till the market recovers.

He urged entrepreneurs to always look towards the listing of their companies as such would boost confidence in them and sustain their business.

The NSE of recent listed Honeywell Plc, Beco Petroleum Products Plc, Guaranty Trust Assurance Plc and Aso Savings and Loans Plc, which increased the equities to 214 and with some new applications already approved.