The Securities and Exchange Commission (SEC) has expressed its readiness to improve the regulatory framework as regards borrowing by governments and corporate entities.
Director General of the Commission, Dr Emomotimi Agama, who disclosed this during an interview, said this has become important given the critical role borrowing plays in the financial system.
“Improving the framework for borrowing is very important because borrowing is part of the financial system. We want to be sure of sustainability in both government borrowing, municipal and state governments.
“It therefore becomes important that we have in the management of such resources via strategic and focused borrowing to help the developments in those sectors,” he said.
For corporates, the SEC DG said the commission is changing the landscape with the new rules on Central Counter Parties (CCPs), adding that the new rules on CCPs have become so critical for Nigeria’s development, especially for corporates in raising capital.
“As a commission, we have established those new rules and they are going to be functional in 2025. We want to make borrowing a seamless and effortless process for Nigerian companies,” he said.
Meanwhile, the Nigerian Exchange Limited (NGX) closed on a positive note yesterday, as price appreciation in MTN Nigeria Communications (MTNN) and 26 stocks lifted overall capitalisation by N508 billion.
The All Share Index (ASI) gained by 831.91 points, representing a growth of 0.80 per cent to close at 104,230.73 points. Accordingly, market capitalisation rose by N508 billion to close at N63.559 trillion.
On what will shape the market in the next trading session analysts at Vetiva Dealings and Brokerage said: “We expect another bullish session in tomorrow’s market, with continued buy-side pressure on MTNN and sustained bargain-hunting sentiment.
“There may also be renewed interest in some leading names in insurance. Furthermore, investors will also be watching the latest auction results for insights into the rate trajectory in the secondary market.
Afrinvest Limited said: “Tomorrow, we expect the market to sustain gains due to bargain opportunities.”
Yesterday’s upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are MTN Nigeria Communications, Transnational Corporation (Transcorp), Vitafoam Nigeria, Africa Prudential and FBN Holdings.
As measured by market breadth, market sentiment closed negative as 27 stocks gained relative to 28 losers. Transcorp and MTNN recorded the highest price gain of 10 per cent each to close at N49.50 kobo and N220 respectively, while Honeywell Flour Mills followed with a gain of 9.95 per cent to close at N8.29 kobo.
AIICO Insurance went up by 9.94 per cent to close at N1.88, while LivingTrust Mortgage Bank also appreciated by 9.82 per cent to close at N4.81 kobo.
On the other hand, SUNU Assurance led the losers’ chart by 9.99 per cent, to close at N9.01 kobo. Universal Insurance followed with a decline of 8.79 per cent to close at 71 kobo while Secure Electronic Technology declined by 8.11 per cent to close at 68 kobo.
Consolidated Hallmark Holdings depreciated by 5.82 per cent to close at N3.40 kobo. C&I Leasing declined by 5.65 per cent to close at N4.01 kobo.
The total volume traded dipped by 32 per cent to 756.418 million units, valued at N24.692 billion, and exchanged in 13,551 deals. Transactions in the shares of FBNH topped the activity chart with 125.714 million shares valued at N3.608 billion. Tantalizers followed with 82.392 million shares worth N195.746 million, while Universal Insurance traded 56.615 million shares valued at N40.562 million.
AIICO Insurance traded 54.331 million shares valued at N101.106 million, while Chams Holding Company sold 33.149 million shares worth N72.484 million.
