The Alternative Securities Market board of the Nigerian Exchange Limited has experienced stagnant trading activity for several weeks due to a lack of investor interest.
According to data provided by the NGX, the board’s index has remained at a constant 658.99 basis points since July 19, 2023.
The companies listed on the ASeM index include Capital Oil with a market capitalization of N1.17 billion, Juli with N157.92 million, Rak Unity Petroleum Company with a market cap of N16.988 million, and Smurfit Products Nigeria with N9 million in market cap.
Capital Oil concluded trading at N0.2 on Friday, and it has seen minimal activity in recent times.
Its last financial results on the Nigerian Exchange Limited were reported for the period ending September 30, 2018.
Another company listed on the ASeM board is Juli Plc, involved in pharmaceutical retail, supermarket operations, and laboratory services.
It closed trading at N0.79 on Friday, maintaining this price for the past seven trading sessions, with the most recent trade occurring on July 31, 2023, involving 888 units of its shares.
Juli had submitted its financial results up to the first half of 2023 to the NGX.
Smurfit also closed trading at N0.2 on Friday, the same price at which 1,500 units of its shares were last traded on July 17.
Rak Unity Petroleum Company plc’s shares concluded at N0.3 per share on Friday.
Meanwhile, NGX Regulation Limited, in its X-Compliance Report dated September 8, 2023, has indicated that the process of closing down the ASeM Board is underway.
Regarding this situation, capital market operators have suggested that the primary reason for the board’s decline is the lack of investor interest rather than issues with the companies themselves.
These companies on the board are relatively small-scale and not highly capitalized, which may not attract many investors in the current market environment.
However, it’s important to note that this doesn’t necessarily reflect underlying issues with these companies; they are simply less liquid and may not align with the preferences of the broader investor base.
