NGX’ securities lending market value rises to US$34m
31 August 2021 Nigeria
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The Nigerian Exchange (NGX) securities lending market value rose to N513 million (US$34 million) as of 20 August 2021, according to its most recent report.
The report also revealed that there has been an uptick in stakeholders’ participation, with 2.3 million units of MTNN valued at N395.6 million (US$27 million) being borrowed.
Jude Chiemeka, head of trading business division at NGX says: “Whether you are a speculative investor looking to make quick gains, or a long-term investor holding stocks, securities lending provides strong potential to deliver benefits to all market players through capital gains and low-risk 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.”
In 2020, the NGX market grew to 7.38 million units valued at N95.2 million (US$6 million) and as of 20 August 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.
The report also revealed that there has been an uptick in stakeholders’ participation, with 2.3 million units of MTNN valued at N395.6 million (US$27 million) being borrowed.
Jude Chiemeka, head of trading business division at NGX says: “Whether you are a speculative investor looking to make quick gains, or a long-term investor holding stocks, securities lending provides strong potential to deliver benefits to all market players through capital gains and low-risk 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.”
In 2020, the NGX market grew to 7.38 million units valued at N95.2 million (US$6 million) and as of 20 August 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.
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