Market News in 2011 and Impact on the ASI - 311211 Proshare

8/3/2019 Market News in 2011 and Impact on the ASI - 311211 Proshare

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Market News YTD 2011 and Impact on the NSE ASI

The Monthly NCM Report @ Dec 2011 www.proshareng.comPage

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ISSN 1597 - 8842 Vol. 1 No. 87

YTDYTDYTDYTD2011

201120112011

The Nigerian Capital Market Report - @ Dec 2011

Market News and Impact on the NSE ASIIssued on January 03, 2012


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The Monthly NCM Report @ Dec 2011 www.proshareng.com

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THE RELEVANCE OF THE REPORT

One of the key challenges in the Nigerian Stock Exchange remains the limitations of Technical Analysis as a veritable predictive tool fordecision making. We have observed many factors that undermine the timeliness, reliability and credibility of data over the last five years

that has made it imperative for us to validate this through a medium to long term research.

Proshare decided from January 2009 to collate data and information on the market, seeking to establish a nexus between the information

flow in the market and price movements. The validating methodologies for analysing the data has been benchmarked against those used

in developed economies given the markets desire to be judged on world class standards.

To aid technical analysis, we hold the view that information flow must be a key determinant of action and price movements. Thus wehave been investigating the information reflection capability of stock prices.

The H1 2011 base information (a quantitative analysis of NSE listed companies and the potential impacts of publicly available news

announcements on daily returns is not published as the research is still at its early stages) provided below serves as a guide on how

information and the ASI moves.

In the last week of June 2011, we however published an Impact Assessment update on NAHCo Plc https://www.proshareng.com/news/singleNews.php?id=14119

which revealed the company to be very sensitive to general market news as the price and ASI traded same direction more often thansideways trending by 54%- a significant correlation within the period reviewed.

Our expectation is that as the market becomes more aware of price movements in stocks without any corporate action, corporate

information or public news or information; early warning signals would be raised as to corporate governance weaknesses in the

administration of the exchange.

With those firms that establish a nexus between their prices and the information available to them we should see an increase in the

compliance rate with post-listing requirements, exchange rules and investor relations responsibilities; including a higher level ofcompliance with corporate governance ethos.


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Oscar Onyeama, CEO of the NSE.

More banks push for mobile money licenses - As the Nigerian economy gears

up to move into cashless mode by January 1, 2012, more banks are strengthening

their electronic channels and engaging in intense lobbying to obtain mobile money

licences before the end of the year.

recorded on preceding session to close at

N6.49trillion (US$43.30billion).Market report for the

day was titled: Equity Market resumes uptrend

as Dangote Cement Plc records +5.00% gain.

(http://www.proshareng.com/news/15873)

Dec 30 NAHCO Needs N5bn Bond to Fund Transformation - The MD of the Nigerian 30 13

The All-Share Index in the week under review dipsb 0 16% t l t20 730 63 i t


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The Monthly NCM Report @ Dec 2011 www.proshareng.com Page 110

Aviation Handling Company Plc, Mr. Kayode Ojo, has explained that the company

went to raise N5 billion bond to finance its transformation programmes.

SEC to firm up dematerialisation process in 2012 Oteh - The SEC has stated

its readiness to firm up dematerialisation plans in the stock market transactions.

DG of the SEC, Ms. Arunma Oteh, disclosed this after the Capital Market Committee

(CMC) retreat held recently in Akwa Ibom, saying, We are committed to

addressing all of those things that will ensure efficiency. One of those things is to

ensure that our dematerialisation plan is really firmed up.

Customers' apprehension heralds mobile money launch - With barely two

days to the commencement of the CBN's Cashless Nigeria' pilot project which is

expected to bring several millions of unbanked Nigerians into the formal banking

system, BusinessDay investigations indicate that most Nigerians still dont know

how the mobile banking system works.

by -0.16% to close at20,730.63 as against anupbeat by +3.68% recorded last week to closeat20,763.26.

In the same vein, the market capitalization in theweek depreciated by N10.28 billion(US$68.55million) to close at N6.53 trillion

(US$43.53billion) as against appreciation by 211.66billion (US$1.41billion) recorded last week to close atN6.54 trillion (US$ 43.60billion). Market report forthe week was titled: : NSE ASI sheds -0.16% inthe week, YTD performance stands at -17.42%(http://www.proshareng.com/news/15877)



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The Monthly NCM Report @ Dec 2011 www.proshareng.com Page 111

Plot 590b, Pat Ojebuoboh Close, Omole Phase II,Isheri LGA, P.O.Box 18782, Ikeja, Lagos, NG

DL: +234 1 7624131 E-mail: [email protected]: www.proshareng.com

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Market News in 2011 and Impact on the ASI - 311211 Proshare

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