Nigeria Stock Exchange (NSE)
The Nigerian Stock Exchange, NSE, was established in 1960 as the Lagos Stock Exchange by the Stock Exchanges Act of 1961 as a self-regulatory organisation. In December1977, it became the NSE, with branches established in different parts of the country. At present, there are six branches of the NSE. Each branch has a trading floor. The branch in Lagos was opened in 1961, Kaduna, 1978; Port Harcourt, 1980; Kano, 1989; Onitsha, February 1990; and Ibadan, August 1990. Lagos is the head office of the Exchange.
The Exchange which started with only 19 securities traded on its floors in 1961, now has 264 securities made up of 26 government stocks, 57 Industrial Loan (Debenture) preference Stocks and 181 Equity/Ordinary shares of companies, all with a total market capitalisation of approximately N335 billion. Most of the listed companies have foreign/multinational affiliations and represent a profile of the various sectors of the economy, ranging from automobile, banking, airlines, breweries, through pharmaceutical to agro-allied, publishing, textile, petroleum and insurance companies. The companies can also trade in Rights Issue whereby a shareholder can sell his Right.
With the internationalisation of the NSE, quoted companies can now access fund from international markets through Global Depositary Receipts, GDR, American Depository Receipts, ADR etc. Using their shares as underline securities.
The NSE has a tested network of over 200 stockbrokerage firms, issuing houses (Merchant Banks), practising corporate law firms and over 50 quality firms of auditors and reporting accountants (most with international links). It is a recognised fact that the Stock Exchange and most of the nations stock broking firms and issuing houses are staffed with creative financial engineers that can compete anywhere in the world. There is therefore, a network of intermediating organisations that can effectively and creditably meet the challenges and growing needs of investors.
NSEs, whose motto is Our Word is our Bond is currently the only stock exchange in the country. It is owned by members and directed by the Council, which has an upper limit of 25 members comprising individuals who by their track records can make valuable contributions, institutions, and stockbroking companies. Each group controls one-third members of the Council. The Council makes decisions on the policies of the NSE. These decisions are carried out by a full-time executive headed by the Director-General.
The money to pay for the operation of the exchange comes mainly from two sources: the members of the NSE and the companies listed on the NSE. Members pay a membership fee, called an annual subscription, every year.
Right now the NSE is computerised with automated clearing and settlement trading. It also has listing requirements for companies, which are quoted on the NSE in line with international stock exchanges. It releases sectoral indices report which enables investors access sectoral performance of listed companies.
(Source: Nigeria Stock Exchange)
Best sectors to invest judging from performance of stocks at the Nigeria Stock Exchange are: Banking, Brewery, Petroleum (Oil), Manufacturing, and Construction
CONTACT ADDRESS
Dr. Ndi Okereke-Onyiuke Director-General OR Mr. Sola Oni Manager, Corporate Affairs The Nigerian stock Exchange Stock Exchange House 2/4 Customs Street P.O.Box 2457 Lagos Nigeria. Telephone. +234 01) 2660287, 2660335, 2660305 E-mail nse@linkserve.com.ng Web address: http://www.nse.com.ng