The Nigerian Exchange Limited’s Alternative Securities Market board has been trading flat for weeks due to a lack of investor interest.
The Punch reported that the board’s index has stayed constant at 658.99 basis points since July 19, 2023, according to statistics from the NGX.
The ASeM index includes companies like Capital Oil, with a market capitalization of N1.17 billion, Juli, with N157.92 million, Rak Unity Petroleum Company, with N16.988 million, and Smurfit Products Nigeria, with N9 million.
Friday’s closing price for capital oil was N0.2. It has not recently been active, and its most recent financial statements were posted on the Nigerian Exchange Limited for the quarter that concluded on September 30, 2018.
Juli Plc is another company on the AseM board that is active in pharmaceutical sales, supermarket operations, and laboratory services. On Friday, it finished trading at N0.79, the same price it had held for the previous seven trades.
The last time was on July 31, 2023, when 888 units of its shares were traded. The NGX had received financial reports from Juli through till the first half of 2023.
Rak Unity Petroleum Company plc’s shares concluded at N0.3 per share on Friday, while Smurfit’s shares ended trading at N0.2, the same price at which 1,500 units of its shares were last traded on July 17.
The ASeM Board closure procedure is currently underway, according to the NGX Regulation Limited’s X-Compliance Report from September 8, 2023.
Capital market professionals who commented on the situation said that the board’s moderation was driven by the interests of small investors.
A stockbroker and the CEO of Wyoming Capital & Partners, Tajudeen Olayinka, stated, “I believe it is more about the investor interest, not necessarily to do with the companies.
“You would categorize the businesses on the board as small-scale rather than heavily capitalized. Even while not many investors go there, this does not guarantee that they will have difficulties. Investors may not be going to such companies for a variety of reasons, but I don’t believe they have many concerns.”
