Tuesday, 16 April 2013

Onyema: 100 Industrial Goods Firms Eye Listing on NSE

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NSE DG, Oscar Onyema
The number of companies listed in the industrial goods sector of the Nigerian Stock Exchange (NSE) will increase very soon as over 100 companies eyeing listing on the exchange, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, has said.

 There are 27 companies that are currently listed in the industrial goods sector covering building materials, electronic and electrical products, packaging/containers, tools and machinery. The sector contributes 28 per cent to the total market capitalisation of the exchange.
However, Onyema, told THISDAY last week at the CEO Sectoral dinner for industrial goods in Lagos, the situation would improve soon because there are 100 companies currently eyeing listing in that sector.

According to Onyema, the exchange has made deliberate efforts to encourage new listings. He noted that those efforts are beginning to yield the desired results. Those efforts, he explained, were in the areas of business development, strong regulatory environment and technology.

“We have introduced value adding services, reviewed our listing requirements. The exchange has also introduced x-compliance report for companies and dealing members among other initiatives. All these are attracting attention of companies that have shown willingness to list on the exchange,” he said.

As part of efforts to make the industrial goods sector of the exchange more attractive for investors thereby encourage more listings, the NSE last week introduced the NSE Industrial Index.
The index, which comprises the most capitalised and liquid companies in the industrial sector, is designed to provide an investible benchmark to capture the performance of the industrial sector.

Onyema had explained that 10 out of the 27 companies listed in the industrial goods sector of the NSE were selected for the index based on their market capitalisation and liquidity.
The 10 foundation companies are: Ashaka Cement Plc; Nigerian Bag Manufacturing Company Plc; Dangote Cement Plc; Lafarge Cement WAPCO Nigeria Plc; CAP Plc; Cement Company of Northern Nigeria Plc; Berger Paints Plc, Cutix Plc; DN Meyer Plc and Portland Paints and Products Nigeria Plc.
Onyema disclosed that any investor who had invested in industrial goods sector would have recorded a return of 40.4 per cent in 2012, noting that year-to-date, the sector has fetched a return of about 41 per cent.

 Apart from the introduction of the index, the NSE will also re-launch its Alternative Securities Market (ASeM) in order to improve the performance of existing firms and encourage the listing of new ones.
Source: ThisDayLive

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