The Nigerian StockExchange (NSE)has said that the Investors Protection Fund in its custody has risen to N600 million.The NSE said the fund, which presently was in the coffers of a first generation bank, further showed the transparency and integrity the management of the Exchange seeks to bring to bear on the operations of the market.The NSE's immediate past Sole Administrator, Mr Emmanuel Ikazoboh, made this disclosure at the NSE's 50th Annual General Meeting, noting that the dealing members query of the figure of the Investors Protection Fund in its financials was actually N600million and not N2million.Speaking on the general focus of the Exchange on how to broaden the market going forward, the NSE Head said,'We will also focus on the introduction of market makers, which would bring some fundamental changes in our trading processes and in licensing of Designated Advisers, who will anchor the operations of the Alternative Securities Market (ASEM).'The Exchange will also be working on the provision of alternative capital raising mechanisms that will deepen the market and improve liquidity. Others are: resolving the issues surrounding stock lending and stock borrowing to allow these activities debut in our market; extending and deepening existing partnerships with other Exchanges on the continent, and other parts of the world.'Speaking on market outlook, the Head of Council, Mallam Ballama Manusaid the Exchange expected some manufacturing companies to beef up their capital bases using instruments available in the market, particularly rights and medium tenor bond.He assured stakeholders that the existing market infrastructure remained sound and capable of meeting the current needs of investors, issuers of securities and market operators.Commenting on the performance of listed companies, Manu said that the harsh operating environment led to mixed performance by companies.'Declining incomes and savings are attributed to rising unemployment, weakened purchasing power arising from inflationary pressure, and investors' apathy caused by a decline in the participation of Nigerians in the stock market. Similarly, the rise in interest rates especially during the fourth quarter, profit taking and absence of margin facilities exerted downward pressure on the stock market,' he saidAddressing dealing members, Manu said the market closed in 2010 with a total market capitalisation of N10.3 trillion and as at October 31, 2011, the total market capitalisation was relatively unchanged at N10.3 trillion.He said the market capitalisation of listed equities suffered a slightly different fate, adding, 'in 2010, the equities market capitalisation was a healthier with N7.91 trillion, but by October 31, 2011, had dropped to N6.63 trillion, a decline of 16 per cent.
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