TOWN AND GOWN SEMINAR SERIES (BANKING AND FINANCE)

PRESENTED BYATANDA ISIAKA AJANI, BSC, ACS, ACA, CIIA

The capital market is the platform where long term funds can be raised by corporate bodies and government agencies which aids long term growth of any nation’s economy.

The money market and capital market form the hallmark of the national economy

The money market is regulated by the apex bank, Central Bank of Nigeria

The capital market is regulated by ‘’The Securities and Exchange Commission’’

Instruments traded on the capital market include: 1. ordinary shares, 2. preference shares, 3. Corporate debt, 4. FGN Bond, 5. SGN Bond, and 6. Corporate Bond

The Nigeria Stock Exchange The Stock Brokers The Dealer The Registrars The CSCS The Issuing House Reporting accountants Auditors to the company A solicitor to the issue A solicitor to the company Underwriters, if the issuer opts for underwriting

The Nigerian Stock Exchange (NSE) was founded in 1960 and today services the largest economy in Africa. It is a registered company limited by guarantee. it is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC) of Nigeria.

The ‘’NSE’’ is the only organized market in Nigeria that creates the platform for the trading of quoted and listed securities such as equities, Bonds ( corporate & Public) and Exchange Traded fund by the investing public.

The NSE is an automated exchange that provides platform for registered brokers and dealers to buy and sell financial instruments on behalf of clients.

As at today it has about 258 listed securities. It operates fair, orderly and transparent market that brings the best of enterprise together with local and global investor communities. The Nigerian Stock Exchange is poised to champion the acceleration of Africa's economic development while creating durable wealth.

The Primary Market The Secondary Market

The securities are:

EQUITIES EXCHANGE TRADED FUND

DEBT INSTRUMENTS

Ordinary Shares

Mutual funds Bond

Preference shares

The downward trend we are witnessing in recent times is connected to FPI outflow ( see table 1) and the continuous crash in the Oil prices couple with other factors which we shall examine in the next slide.

Also the market CAP as at Monday 2nd of March was =N=10.3trillion against 2014 trading ending CAP of N11.3 trillion which shows a decline. Also, presented is a table showing the trading movement for the month of November 2014 to enable us see the trends of activities on the floor.

Table 1: Analysis of FPI & DI Transactions for the Period Ended 31 October 2014 (N’B) Period Total FPI FPI Total FDI Total DI FDI DI A Deals Inflow Outflow Deals Deals % %

Jan 2014 181.97 39.53 50.14 89.67 92.30 49.28% 50.72% Feb 2014 198.70 32.75 103.53 136.28 62.42 68.59% 31.41% Mar 2014 166.84 55.13 75.42 130.55 36.29 78.25% 21.75% Apr 2014 184.43 65.06 73.73 138.79 45.64 75.25% 24.75% May 2014 201.61 41.27 50.59 91.86 109.75 45.56% 54.44% June 2014 225.51 68.78 49.22 118.00 107.51 52.32% 47.68% July 2014 224.19 32.68 23.74 56.42 167.77 25.17% 74.83% Aug 2014 135.58 53.86 56.54 110.40 25.18 81.43% 18.57% Sep 2014 522.74 134.14 92.54 226.68 296.06 43.36% 56.64% Oct 2014 175.10 52.06 101.22 153.28 21.82 87.54% 12.46% Oct 2013 141.13 39.45 42.88 82.33 58.80 58.34% 41.66% 2014 YTD 2,216.67 575.26 676.67 1,251.93 964.74 56.48%% 43.52%

Date Capitalization Index MovementFriday 31/10/2014 12,436,949,399,180.60 37,550.24

Monday 03/11/2014 12,368,592,266,465.60 37,343.85

Tuesday 04/11/2014 12,169,017,948,092.10 36,744.46

Wednesd 05/11/2014 11,908,661,333,308.10 35,958.38

Thursday 06/11/2014 11,423,954,905,549.00 34,494.93

Monday 10/11/2014 11,004,321,883,134.50 33,224.84

Tuesday 11/11/2014 11,154,031,115,097.80 33,670.75

Wednes 12/11/2014 11,256,178,284,782.80 33,967.48

Thursday 13/11/2014 11,437,678,248,604.50 34,515.47

Friday 14/11/2014 11,724,352,478,898.70 35,381.02

Monday 17/11/2014 11,760,050,300,987.30 35,488.80

Tuesday 18/11/2014 11,564,646,961,013.30 34,902.59

Wednesday19/11/2014 11,313,888,633,978.99 34,145.79

Thursday 20/11/2014 11,076,306,821,786.56 33,428.76

Friday 21/11/2014 11,241,121,978,737.13 33,926.18