News Column

Stocks Hold Ground, Extend Gains Amid Negative Breadth

August 7, 2014

Bukky Olajide

THE equities market closed yesterday on positive note, as Nigerian Stock Exchange[NSE] All Share Index[ASI] appreciated by 0.11 per cent to close at 42,339.86 basis points, compared with the 1.18 per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 2.45 per cent.

Market breadth however closed negative as Eterna led 21 gainers against 38 losers topped by Infinity at the end of yesterday's session- an unimproved performance when compared with previous outlook.

Market turnover closes positive as volume traded declined by 26.03 per cent against 10.65 per cent uptick recorded in the previous session. Access, Zenithbank and Transcorp were the most active to boost market turnover. Zenith bank and Nigerian Breweries top market value list.

For sectoral indices, banking recorded 1.24 per cent gain to emerge the most supportive sectoral performance among others while INS is the most hit to close with 0.59 per cent loss

Meanwhile, the International Organization of Securities Commissions has unveiled an information repository for central clearing requirements for OTC derivatives, which provides regulators and market participants with consolidated information on the clearing requirements of different jurisdictions.

By providing this information, IOSCO seeks to assist authorities in their rule making and help participants comply with the relevant regulations in the Over The Counter[OTC] derivatives market. The repository sets out central clearing requirements on a product-by-product level, and any exemptions from them. The information in the repository will be updated quarterly.

Established in February 2014, the repository has been available until now only to IOSCO members. IOSCO has since gained sufficient experience, and gathered enough information on central clearing requirements, to open the repository to the public.

The information in the repository is for reference only. Interested parties should refer to the original version of the relevant laws and regulations.

In February 2012, IOSCO released the report on Requirements for Mandatory Clearing in response to the G20 commitment to ensure that all standardized OTC derivatives contracts were cleared through central counterparties by end-2012.

The report recommended that authorities communicate with one another regarding the implementation of mandatory clearing within their own jurisdictions, and encouraged IOSCO to explore the establishment of a central information repository to consolidate that information.

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Source: AllAfrica

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