Nigerian Stock Exchange cuts transaction costs for traders

Nestle topped the losers chart.

The Nigerian Stock Exchange, NSE, has commenced the reduction of the cost of its Trade Alert service by about N1.24 billion from March 2014.

This reduction is being achieved through the scrapping of the current charge of 0.06 per cent of every trade on the Exchange and an introduction of an enhanced notification system, X-Alert, which will be charged at a flat fee of N4 per transaction, the Exchange said.

Ade Bajomo, the Executive Director of Market Operations and Technology, NSE, said the enhanced X-Alert is a service that will allow the investing public know when a transaction has been made on their account.

“Each time investors buy or sell a security, an alert is sent to them via a Text Message to the recipient’s mobile phone or via an e-mail to the recipient’s mailbox. So what that does is to bring real time notification plus transparency to the market at market rates while safeguarding against unauthorised sale or purchase of securities”.

Mr Bajomo said, “The big difference for the investing community is that rather than pay 0.12 per cent of every trade round-trip, investors will now pay a flat fee of N4.00. Based on 2013 figures, the trade alert charges with the old system was some N1.25 billion; with the improved notification system however, the annual cost of the alerts would be some N5.52 million based on a N4 flat fee – that is a reduction of N1.24 billion per annum in the cost incurred by investors transacting in the market”.

Kyari Bukar, the Managing Director, CSCS, said the enhanced service is delivered in real time to customers. He also urged that all customers should ensure that their brokers are provided with up to date mobile phone numbers and email accounts to enable the notification system work effectively and provide timely update on all account transactions.

There are also the added benefits of effective fraud alert in cases of unauthorised transactions on account, reduction in time spent confirming trades and an enhancement of transparency between the trader and its clients.

Meanwhile, Nestle topped the losers chart after Tuesday’s trading on the Nigerian Stock Exchange with a N25.00 share price loss. The firm’s share price closed at N1,075.00 down from N1,100.00. It was followed by Nigerian Breweries, which lost N13.98, closing at N145.01 down from N158.99 before transactions. Guinness lost N9.10 and closed at N179.00 down from N188.10. Conoil also lost N2.58 and closed at N49.12, down from N51.70 while Intbrew’s share price closed at N27.25 down from N28.55, losing N1.30, after the day’s trading session.

WAPCO led the gainers chart, gaining N4.46 at the close of the day’s transactions as its share price rose from N105.54 to N110.00. It was followed by Glaxosmith, which gained N1.00 closing at N70.00, up from N69.00.

Dangote Cement was third on the top five gainers chart, recording a N1.00 share price gain, as it closed at N240.00, up from N239.00. Unilever came fourth, recording a share price gain of N1.00 and closed at N49.00 from N48.00. UAC-PROP also gained N0.98 and closed at N18.64 from N18.00 before trading.

The value of transactions after trading stood at 4.839 billion, recorded in 4,993 deals. The volume of transactions stood at 341.1 million after the day’s transactions. The Exchange’s market capitalisation also stood at 12.59 trillion while the Exchange’s All Share Index (ASI) stood at 39, 199. 41 after the day’s trading.

Zenith Bank led the most traded shares chart, trading a volume of 75.91 million shares valued at N1.626 billion. UBA also made the chart, trading 34.602 million shares valued at N272.94 million. Transcorp came third, trading 32.05 million shares valued at N114.94 million. AFRIPRUD traded 27.8 million shares valued at N113.20 million while UBCAP traded 21.06 million shares valued at N60.48 million.

Top 5 gainers
COMPANY
LAST CLOSE
CURRENT
CHANGE
WAPCO
105.54
110.00
4.46
GLAXOSMITH
69.00
70.00
1.00
DANGCEM
239.00
240.00
1.00
UNILEVER
48.00
49.00
1.00
UAC-PROP
19.99
20.97
0.98
 
Top five losers
COMPANY
LAST CLOSE
CURRENT
CHANGE
NESTLE
1100.00
1075.00
-25.00
NB
158.99
145.01
-13.98
GUINNESS
188.10
179.00
-9.10
CONOIL
51.70
49.12
-2.97
INTBREW
28.55
27.25
-1.30
Market Statistics (Snapshot)
Market Statistics (Snapshot)
ASI
39, 199.41
DEALS
4, 993
VOLUME
341. 1 (million)
VALUE
4. 839 (billion)
CAP
12. 59 (trillion)

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