Lack of investors’ interest in the Alternative Securities Market board of the Nigerian Exchange Limited has kept the board trading flat for weeks.
According to data from the NGX, the board’s index has remained unchanged at 658.99 basis points since July 19, 2023.
Companies on the ASeM index include Capital oil with market capitalisaton of N1.17 bn, Juli with N157.92m, Rak unity Petroleum Company with market cap of N16.988m and Smurfit Products Nigeria with N9m in market cap.
Capital oil closed trading at N0.2 on Friday. It hasn’t seen any activities in recent times and its last financial results on the Nigerian Exchange Limited were for the period ended September 30, 2018.
Another group listed on the AseM board is Juli Plc, which is involved in the retailing of pharmaceuticals, running of supermarkets and laboratory services. It closed trading at N0.79 on Friday, a price it had maintained the last seven times it had been traded.
The last time was July 31, 2023 when 888 units of its shares were traded. Juli had filed its financial results up to the first half of 2023 with the NGX.
Smurfit closed trading at N0.2 on Friday, the same price 1,500 units of its shares were last traded on July 17 and Rak Unity Petroleum Company plc’s shares closed at N0.3 per share on Friday.
Meanwhile, the NGX Regulation Limited in its X-Compliance Report dated September 8, 2023, revealed that the process of closing down the ASeM Board is in progress.
Speaking on the development, capital market operators stated that poor investors’ interest was driving the moderation of the board.
A stockbroker and the Chief Executive Officer of Wyoming Capital & Partners, Tajudeen Olayinka, said, “I think it is more of the investor interest, not necessarily to do with the companies. The companies on the board are companies you will classify as small scale, not highly capitalized companies. Many investors do not go there but it doesn’t mean that they will be struggling. I don’t think those companies have many issues that investors are not going there; it is just that they are not so liquid. They don’t attract the kind of investors that we have in the market today.