Market Operators Caution On Delisting At Exchange

Capital market operators said only an investor-friendly capital market would check incessant delisting of quoted companies at the Nigerian Stock Exchange (NSE). The operators also said only investment friendly policies and management would engender post listing benefits.

In separate interviews with newsmen  in Lagos on Tuesday, the operators said there was need for the exchange to ensure confidence in the rules and regulations.

Mazi Okechukwu Unegbu, Chief Executive Officer of Maxifunds and Securities Ltd., said that loss of confidence in the market was responsible for the recent delisting of companies at the exchange.

“There is no certainty of the rules and regulations on the capital market.”

Unegbu, former Managing Director of the defunct Citizen Bank, said that the companies delisted because they were not sure of happenings at the capital market.

He charged regulators to reinvigorate new confidence between operators and investors, stressing that the stock market remains the best vehicle for sustainable development. “It is the cheapest way for raising funds for business because it is equity, you don’t pay interest, and you only pay what is called flotation cost for bringing the company to the market.’’ In his remarks, Mr Sehinde Adenagbe, Chief Executive Officer, Standard Union Securities Ltd., said that the difficult operating environment encouraged companies to delist from the exchange. Adenagbe expressed the need for a downward review of the market operating policy.

‘’The issue of amount required for listing, that one could be reviewed.

‘’I can’t say categorically now the amount for listing but it must be favourable, at least, it must be considerable to what they do; it should not be a burden on companies otherwise they will be feeling how would they come to the market.’’