TOWN AND GOWN SEMINAR SERIES (BANKING AND FINANCE) PRESENTED BY ATANDA ISIAKA AJANI, BSC, ACS, ACA, CIIA

1 The Stock Market In Perspective; Concept & Overview 2 Market Review- Recent performance - Major determinant factors 3 Fundamental Factors- Affecting the Market - Towards growth path 4 Conclusion

 The capital market is the platform where long term funds can be raised by corporate bodies and government agencies which aids long term growth of any nation’s economy.  The money market and capital market form the hallmark of the national economy  The money market is regulated by the apex bank, Central Bank of Nigeria  The capital market is regulated by ‘’The Securities and Exchange Commission’’  Instruments traded on the capital market include: 1. ordinary shares, 2. preference shares, 3. Corporate debt, 4. FGN Bond, 5. SGN Bond, and 6. Corporate Bond

 The Nigeria Stock Exchange  The Stock Brokers  The Dealer  The Registrars  The CSCS  The Issuing House  Reporting accountants  Auditors to the company  A solicitor to the issue  A solicitor to the company  Underwriters, if the issuer opts for underwriting

 The Nigerian Stock Exchange (NSE) was founded in 1960 and today services the largest economy in ​Africa. It is a registered company limited by guarantee. it is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC) of Nigeria.  The ‘’NSE’’ is the only organized market in Nigeria that creates the platform for the trading of quoted and listed securities such as equities, Bonds ( corporate & Public) and Exchange Traded fund by the investing public.

 The NSE is an automated exchange that provides platform for registered brokers and dealers to buy and sell financial instruments on behalf of clients.  As at today it has about 258 listed securities. It operates fair, orderly and transparent market that brings the best of enterprise together with local and global investor communities. The Nigerian Stock Exchange is poised to champion the acceleration of Africa's economic development while creating durable wealth.  ​​

 The Primary Market  The Secondary Market  The securities are: EQUITIESEXCHANGE TRADED FUND DEBT INSTRUMENTS Ordinary SharesMutual fundsBond Preference shares

 The downward trend we are witnessing in recent times is connected to FPI outflow ( see table 1) and the continuous crash in the Oil prices couple with other factors which we shall examine in the next slide.  Also the market CAP as at Monday 2nd of March was =N=10.3trillion against 2014 trading ending CAP of N11.3 trillion which shows a decline. Also, presented is a table showing the trading movement for the month of November 2014 to enable us see the trends of activities on the floor.

 Table 1: Analysis of FPI & DI Transactions for the Period Ended 31 October 2014 (N’B)  Period TotalFPIFPITotal FDITotal DIFDIDI  ADeals InflowOutflowDealsDeals % %  Jan % 50.72%  Feb % 31.41%  Mar % 21.75%  Apr % 24.75%  May % 54.44%  June % 47.68%  July % 74.83%  Aug % 18.57%  Sep % 56.64%  Oct % 12.46%  Oct % 41.66%  2014 YTD 2, , % 43.52%

DateCapitalizationIndexMovement Friday 31/10/201412,436,949,399, , Monday 03/11/201412,368,592,266, , Tuesday 04/11/201412,169,017,948, , Wednesd 05/11/201411,908,661,333, , Thursday 06/11/201411,423,954,905, , Monday 10/11/201411,004,321,883, , Tuesday 11/11/201411,154,031,115, , Wednes 12/11/201411,256,178,284, , Thursday 13/11/201411,437,678,248, , Friday 14/11/201411,724,352,478, , Monday 17/11/201411,760,050,300, , Tuesday 18/11/201411,564,646,961, , Wednesday19/11/201411,313,888,633, , Thursday 20/11/201411,076,306,821, , Friday 21/11/201411,241,121,978, ,926.18