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STOCKBROKER PREDICTS REBOUND OF PRIMARY MARKET ACTIVITIES

By NBF News
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Mr Sehinde Adenagbe, the Chief Executive Officer of  Standard Union Securities Ltd, says the new issues recently approved by the Nigerian Stock Exchange (NSE) would revive the primary market.

Adenagbe told newsmen last week in Lagos, that investors should be adequately enlightened on the new issues.

It will be recalled that the NSE recently approved nine issues, comprising one government bond, three rights issues, one offer for subscription, one public subscription, two schemes of arrangement and one scheme of merger.

He said that with proper investor enlightenment, the new issues would deepen the market.

Adenagbe stressed that the capital market had the potential to accommodate more new issues.

According to him, investors should take advantage of the current low prices of equities to invest in the capital market.

'Prices are ridiculously low now and will not continue like that forever,' he said.

Adenagbe said that investors who were not on pressure to repay loans, could take advantage of the current market trend and invest..

He called on shareholders to take up rights issues being floated by some companies to ensure their full subscription.

The stockbroker advised shareholders to prove to new investors that there was still hope in the nation's capital market.

It should be noted that that some of the rights issues recently approved by the NSE include the International Breweries' 1.5 billion ordinary shares of 50k each at N5.08 per share.

NSE also approved Vono Products rights issue of 525 million ordinary shares of 50k at N1.60 per share.