…Investment tribunal seeks jurisdiction beyond capital market transactions***
The Nigerian equities market resumed trading week on Monday with a loss of 0.74 per cent, as investors’ net worth dipped by N90 billion in value with market capitalisation declining to N13.423 trillion against N13.522 trillion on Friday.
Specifically, the All Share Index (ASI) shed 204.68 points or 0.74 per cent to close at 27,574.32 against 27,779.000 achieved on Friday, following losses achieved by medium and large equities.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Chemical and Allied Products (CAP), Cement Company of Northern Nigeria (CCNN), Dangote Cement and Unilever Nigeria.
Reviewing the market performance, analysts at Afrinvest Limited said, “In line with the trend, we expect the bearish performance to continue in the absence of any positive driver.
“Nevertheless, we do not rule out the possibility of bargain hunting activities driving positive performance in subsequent sessions.”
However, market breadth closed positive, with 25 gainers compared with 13 losers.
Unity Bank and Airtel Africa led the losers’ chart in percentage terms, dropping 10 per cent each to close at 63k and N315 per share, respectively.
Chams followed with a decline of 7.69 per cent to close at 24k per share.
Initiates dropped 6.67 per cent to close at 70k, while CAP shed 6.06 per cent to close at N23.25 per share.
Conversely, Cornerstone Insurance recorded the highest price gain of 10 per cent, to close at 33k per share.
NEM Insurance followed with 9.55 per cent to close at N1.95, while Okomu Oil grew by 9.30 per cent to close at N53.90 per share.
Cadbury Nigeria rose by 8.37 per cent to close at N11.65, while Livestock Feeds appreciated by 7.69 per cent to close at 42k, per share.
In spite of the drop in market indices, the total volume of shares traded rose by 62.4 per cent with an exchange of 271.24 million shares valued at N2.91 billion traded in 4,795 deals.
This was against 165.34 million shares valued at N2.621 billion traded in 3270 deals on Friday.
FBN Holdings topped the activity chart with 56.58 million shares valued at N309.25 million.
Guaranty Trust Bank followed with 25.93 million shares worth N731.45 million, while Access Bank traded 15.89 million shares valued at N118.55 million.
Zenith Bank traded 15.75 million shares valued at N306.36 million, while Fidelity Bank transacted 14.77 million shares worth N26.33 million.
In the meantime, determined to ensure speedy resolution of financial market disputes, the Investment and Securities Tribunal (IST) on Monday called for expansion of its jurisdictions beyond the capital market.
The Chief Executive Officer of IST, Mr Siaka Idoko-Akoh, made the call at the opening of the tribunal’s 2019/2020 legal year in Lagos.
Idoko-Akoh said that it had become necessary to ensure that the relevance of the body was not limited to the capital market.
He said that expansion of IST jurisdictions would engender speedy resolution of disputes in the financial services sector, away from the usual delays inherent in the regular court system with its attendant consequence for economic growth.
According to him, the tribunal’s panel comprises of persons of proven ability and expertise in corporate and capital market matters and experienced in securities and investments laws, practices, operations and procedures.
“We make bold to say that over the years, the tribunal has continued through its long line of well thought out judgments and rulings, to evolve a new and unique jurisprudence in the Nigeria capital market.
“It has become necessary however, to ensure that the relevance of the IST is not limited to the capital market alone.
“Leveraging on the IST success story, the idea has been mooted in some quarters of the need to enlarge the jurisdiction of the IST to encompass adjudication of disputes arising from dealings or transactions in the financial services sector of the Nigerian economy,” he said.
Idoko-Akoh added that over 70 judgements had been delivered in keenly contested cases across the zones within the statutorily prescribed time of three months from the date of commencement of hearing.
“This is exclusive of cases either struck out, withdrawn or resolved through our court settlement process, while about 24 cases are on-going,” he stated.
Responding, the Deputy Chairman of the House of Representatives Capital Market Committee, Mr Anayo Edwin, said that upon the inauguration of the committee by the speaker, the committee would consider the tribunal’s request.
“Arising from the chairman’s address, let me say that upon the inauguration of this committee by the honourable speaker, we shall consider your request for the expansion of the tribunal’s jurisdiction to cover other financial sector related cases and for other purposes”, Edwin said.
He, however, urged the tribunal to achieve sustainable growth of the financial sector through a harmonious and investment friendly capital market.