Fidelity bank banner Bayelsa State banner
How non-listing of MTN shares in 2017 will affect Nigerian Stock Exchange: Experts

By News Express on 30/01/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 3,003


Some financial experts have warned that the postponement of the listing of MTN shares on the Nigerian Stock Exchange (NSE) will slow down the listing of other multinationals being wooed by the bourse.

They told the News Agency of Nigeria (NAN) in Lagos that the Federal Government must do everything possible within its powers to ensure the listing of the company’s shares on the NSE in 2017.

The operators spoke against the backdrop of a statement by the MTN Group Ltd that it may put off plans to list its Nigerian operation until 2018, as it strived to resolve a regulatory dispute.

Mr Phuthuma Nhleko, MTN Chairman and Acting Chief Executive Officer, was quoted as saying at the World Economic Forum in Davos, Switzerland that the listing may be within the 12 to 18-month period.

NAN reports that MTN Nigeria in June 2016, said that it would list its shares on the nation’s bourse in 2017, after being fined for breaching the know-your-customer rules set by the National Communications Commission (NCC).

Dr Uche Uwaleke, Head, Banking and Finance Department, Nasarawa State University, Keffi stated that government should provide further fiscal incentives, in addition to the reduced charges for MTN.

Uwaleke said that putting off the planned listing till 2018 would not mean well for the stock market as other companies that may be considering a similar move could also put such plans on hold.

“If MTN did not push ahead with the plan, other telecom firms like Etisalat and Airtel, including firms in the Oil and Power sectors, currently being wooed by the NSE may develop cold feet.

“They can equally cite the same unfavorable economic conditions as their reason.

“This will not augur well for the stock market. Currently, the market lacks depth and is over-concentrated with just about four companies accounting for over 60 per cent of the equities’ market capitalisation.

So, the presence of MTN and these other companies will help to deepen the market and make it more attractive to local and foreign investors,’’ he added.

Uwaleke said that the company’s plan to list was part of its understanding with the Federal Government over the huge fine imposed on it.

“MTN in 2016 had make known its plan to list on the NSE as part of an understanding it had with the federal government over a huge fine imposed on the company.

“The development led to the fine being slashed considerably by the government.

“The telecom giant had provided a caveat to the effect that whether or not it lists in 2017 would depend on market conditions.

“With the economy still in the woods, illegal charges and legal hurdles to grapple with, the company appears disposed to invoke the caveat as justification for putting off the planned listing till 2018,” Uwaleke said.

He noted that government should spare no effort to get MTN to list on the NSE in 2017, even if it entailed providing further fiscal incentives, in addition to the reduced fine.

Similarly, Malam Garba Kurfi, the Chief Executive Officer, APT Funds and Securities Ltd, said that Nigeria must not scare MTN away from the country with huge fines.

Kurfi said that the listing of MTN shares would attract other big companies to the exchange and at the same time deepen the depth of the market.

He stated that government should work toward listing all its privatised entities on the NSE, to boost activities and increase the number of tradable products. (NAN)

Source News Express

Posted 30/01/2017 11:36:24 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Bomb blast rocks polling station in Enugu

My wish for Nigeria, By Friday Olokor

Ondo community boils over killing of herdsman

Ekiti lawmakers pass grazing Bill into law

Ambode hails Buhari as FG hands over Presidential...

Delta Line: Delta Govt. signs MoU with God...

Petrol sells for N155 in Kano

Crises hit APC •Governors, Senators, Reps join Obasanjo’s...

More Chibok girls to be released soon —...

We’re closing in on militants who blew up...

Reverend Sister gives birth, says: ‘I didn’t know...

Cameroon shuts down internet in English-speaking areas

 

Latest News Oshiomhole, 19 others elected at APC Convention World Cup: Football fan slips into coma while celebrating Super Eagles’ victory APC Convention: Drama as Oyegun’s security detail barred from Eagle Square HURIWA to world leaders: Intervene and stop crackdown on opposition in Nigeria Ekiti Guber: INEC, APC preloading card readers — Fayose Suspected herdsmen kill 18 in Adamawa village APC National Convention: Gov. Sani-Bello optimistic of peaceful, rancor-free exercise Prophet to Obasanjo: Seek forgiveness over June 12 Cholera: 24 new cases recorded in Adamawa APC loses members to PDP in Edo Lai Mohammed faults CPJ, says no journalist is in detention in Nigeria NHRC must push for quick investigation into Bukhari’s murder, end to impunity — SAMDEN

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,955 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (352,771 views) Shameless Genevieve Nnaji exposes breasts in public (280,883 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,543 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,385 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (209,303 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (182,186 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (164,376 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (154,107 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,971 views) Lagos plane crash: Journalist releases victims’ names (144,146 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,878 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,266) Business Verdict (44) Columnists (871) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (507) Features (607) Global Business Monitor (284) International (2,050) Interview (155) Live Commentary (28) Love Matters (124) News (36,439) Opinion (1,005) Pidgin (10) Politics (5,322) Religion (772) Sports (1,560) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigeria vs Iceland 2-0 All Goals & Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement