The lack of investor enthusiasm in the Alternative Securities Market (ASeM) board of the Nigerian Exchange Limited has resulted in a stagnant trading environment for several weeks. According to data provided by the NGX, the ASeM board’s index has remained static at 658.99 basis points since July 19, 2023.
The ASeM board features various companies, including Capital Oil with a market capitalization of N1.17 billion, Juli with N157.92 million, Rak Unity Petroleum Company with a market capitalization of N16.988 million, and Smurfit Products Nigeria with N9 million in market capitalization.
Capital Oil concluded trading at N0.2 on the most recent Friday and has experienced minimal activity lately.
The company’s last financial results on the Nigerian Exchange Limited date back to September 30, 2018.
Another entity listed on the ASeM board is Juli Plc, engaged in pharmaceutical retail, supermarket operations, and laboratory services.
It closed trading at N0.79 on the last Friday, maintaining this price over its last seven trading sessions, with the most recent activity occurring on July 31, 2023, when 888 units of its shares were traded. Juli has submitted financial results up to the first half of 2023 with the NGX.
Smurfit also closed trading at N0.2 on the recent Friday, the same price at which 1,500 units of its shares were last traded on July 17.
Meanwhile, Rak Unity Petroleum Company plc’s shares concluded at N0.3 per share on the same Friday.
Furthermore, the NGX Regulation Limited, in its X-Compliance Report dated September 8, 2023, disclosed that the process of winding down the ASeM Board is currently underway.
In response to this situation, capital market experts have noted that the board’s subdued performance is primarily attributed to the lack of investor interest.
Tajudeen Olayinka, a stockbroker and the CEO of Wyoming Capital & Partners, emphasized that this is more a reflection of investor sentiment rather than issues with the companies themselves.
These ASeM-listed companies are typically smaller in scale and not highly capitalized, which may deter investors seeking more liquid and well-established opportunities in the market.
