ngx NGX

Securities lending hits N95.2m

The value of securities lending transactions in the Nigerian Exchange Limited (NGX) grew from N344,555 in 2019 to N95.18 million in 2020.


According to a document obtained from the NGX, the Group CEO, NGX, Mr. Oscar Onyema, said that the Exchange witnessed significant growth in securities lending transactions on the back of changes made to tax provisions in the Finance Act 2019, enhanced market engagements and a Securities Lending Forum held in June 2020.


“The quantity of Securities lent grew from at 61,435 units valued at N344,555 in  2019 to 7.38 million units valued at N95.18 million in 2020. This represents a 120 and 276 fold increase in the quantity and value of securities lent respectively,” he said.


However, according to a recent data, as at August 20, 2021, it stands at 6.8 million units valued at N513.1 million. The report also gave the breakdown of the companies that pledged the shares as Zenith Bank Plc with 77.33 million shares, MTNN with 8.89 million shares, Dangote Sugar with 43 million shares, GTCO with 31.09 million shares and UBA pledging about 45 million shares.


It will be recalled that the  Head, Trading Business Division at the NGX, Jude Chiemeka, during an interactive session, said that securities lending presented significant benefits to investors in a bull or bear market.


He said: “Whether you are a speculative investor looking to make quick gains, or a longterm investor holding stocks, securities lending provides strong potential to deliver benefits to all market players through capital gains and lowrisk incremental income. It also plays an important role in the capital market by providing liquidity, which in turn reduces the cost of trading and promotes price discovery.”


NGX, in a bid to widen the pool of securities available for lending and increase participation, issued guidelines, which became effective on January 7, 2019. These guidelines were prepared to adequately address stakeholders’ expectations in securities lending transactions and to provide proper education on the procedures and controls involved in securities lending.


Abuja Man reveals (FREE) secret Fruits that Increased his Manh00d size and Lasting Power in 5days…


%d bloggers like this:
Fake Richard Mille Replica Watches, The ceramic upper and lower cases are imported from Taiwan and are processed by ATPT ceramics to form Y-TZP ceramics. After high-tech anti-fingerprint technology, they present a delicate and soft sub-black material. This color quality has remained unchanged for a hundred years. The color and luster are more detailed to achieve the ceramic tone visual pattern electroplating upper and lower shells that are infinitely close to the original products, with anti-reflective coating sapphire glass! The tape uses a soft and delicate Malaysian imported top rubber strap, and the movement is equipped with an imported Seiko NH movement. The buckle of this version is made according to the original size and thinness, making it feel more comfortable and intimate, the highest version on the market Richard Mille Replica