TO further boost investors' confidence in the nation's capital market, the council of the Nigerian Stock Exchange (NSE), through its Quotation Committee, has approved N52.497 billion issues for four companies in the insurance, food beverage/tobacco, other financial institutions as well as petroleum (marketing) sub-sectors.

In a press release made available to The Guardian by the Exchange's spokesman, Mr Sola Oni, yesterday, Guaranty Trust Assurance Plc got approval for listing by introduction of 10 billion ordinary shares of 50 kobo at N3.00 per share. The listing of the insurance company would add N30 billion to the market capitalisation of NSE.

The company, which was incorporated in June 1989 as Heritage Assurance Company Limited, is a subsidiary of Guaranty Trust Bank Plc. The Issue was introduced by Lead Securities & Stockbrokers Limited.

Also approved for listing by introduction by the council was Beco Petroleum Products Plc's 3,716,579 ordinary shares of 50 kobo each at N5.00 per share. By this action, the listing would add N18.583 million to the market.

Beco Petroleum Products Limited was incorporated in 1986 and started business operations in 1987. The company is engaged in the provision of diverse services to the downstream and upstream segments of the petroleum sector of the Nigerian Economy. The Issue was introduced by Valueline Securities & Investment Limited.

Furthermore, Crusader (Nigeria) Plc's supplementary listing of post-consolidation and adjustment of 120,223,158 ordinary shares of 50 kobo each at N2.16 was approved. The value of the listing stands at N259.682 million. The Issue was introduced by Capital Bancorp Limited.

Similarly, Cadbury Nigeria Plc got the council's approval for a rights issue of 2,568,628,106 ordinary shares of 50 kobo each at N8.65 per share. The Issue was introduced by Stanbic Stockbrokers Limited.

According to market analysts, the development is an indication that investor confidence is back in the market.

Meanwhile, the Chartered Institute of Stockbrokers (CIS), yesterday, appealed to the Central Bank of Nigeria (CBN) to follow due process in its ongoing reforms in the banking sector.

CIS, at a joint press briefing with the Association of Stockbroking Houses of Nigeria (ASHON), said stockbrokers detained in connection with the ongoing investigation remain innocent until proven otherwise.

The Associations explained that for now, they would stand by their members until there is an established case of fraud.

CIS President, Mr Dipo Williams and ASHON Chairman, Alhaji Rasheed Yussufu, explained that the impact of the CBN action, if not well managed, is capable of producing "unintended consequences".

Yussufu explained that stockbrokers who took loan from the bank deposited 30 per cent or 50 per cent before the bank added the balance.

He also used the opportunity to appeal to investors to take advantage of the present state of the market to invest, adding that investment in stock is long term in nature.

The Guardian Newspaper, Thursday August 27, 2009.