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Business News of Thursday, 18 August 2022

Source: guardian.ng

NGX to promote corporate governance among listed firms

Nigerian Exchange Limited Nigerian Exchange Limited

The Nigerian Exchange Limited (NGX) has restated its commitment to promote corporate governance among listed firms and other stakeholders in the Nigerian capital market.

At the launch of the Corporate Governance Charter organised by the Nigerian Bar Association Section on Business Law, the Chief Executive Officer of the NGX, Temi Popoola said the launch demonstrates the exchange’s track record of leadership in promoting corporate governance amongst listed companies and other stakeholders within the capital market ecosystem.

“For us as an exchange, sustainability is a key component of our strategy as we aim to enhance corporate governance in the Nigerian capital market. In line with this, the exchange incorporated corporate governance principles in its listing and post-listing requirements and established a corporate governance rating system (CGRS) that provides a comprehensive diagnosis of Nigerian companies’ corporate governance and business integrity practices.

“Our corporate governance index, NGX CG Index, also tracks the performance of all CGRS-rated companies listed on the Exchange which enables adherence to best practices”, he said.

He further stated that these initiatives build on the belief shared with NBA-SBL and the Institute of Directors, Nigeria (IoD), that good corporate governance and compliance structures are foundational requirements for facilitating competitive advantage and profitability, which ultimately stimulates capital market efficiency, economic growth and investments.

“At NGX, we recognise our truly unique role as a securities exchange that can foster the growth of long-term sustainable capital, while positively influencing our key stakeholders to adopt sustainable business practices, including best corporate governance practices and policies.

“Promoting effective and sustainable leadership is critical for us to achieve this objective, and for this reason, the partnership with IoD and NBA-SBL remains of paramount importance to us”, he added.

The Corporate Governance Charter, which is jointly promoted by NBA-SBL, NGX, and IoD is a landmark document of the tripartite organisations and seeks to promote good corporate governance practices in Nigeria by re-emphasising the principles of transparency and accountability, strong governance structure and corporate responsibility.

Meanwhile the bears resurfaced on the equities sector of the NGX, as price depreciation in 16 stocks dragged market capitalisation by N10 billion.

Specifically, the market capitalisation of listed equities declined by 0.04 per cent to N26.801 trillion from N26.811 trillion reported the previous day.

Similarly, the All Share Index also depreciated by 18.29 basis points to 49691.17 points from 49709.46 points traded the previous day. Investors also traded 128.786 million shares valued at N4.124 billion in 3492 deals against 204.162 million shares worth N1.640 billion in 3643 deals.

On the price movement chart, Courteville Business Solutions topped the losers’ chart , dropping by 9.80 per cent to close at 46 kobo. Scoa Plc trailed with a loss of 9.79 per cent to close at N1.75 kobo. SkyAviation fell by 9.73 per cent to close at N5.10 kobo.

Regal Insurance was down by 8.00 per cent to close at 23 kobo. HoneyWell Flourmills also dipped by 5.36 per cent to close at N2.65 kobo. On the other hand, Prestige Assurance led the gainers’ table, adding 9.09 per cent to close at 48 kobo. Sovereign Trust Insurance followed with a gain of eight per cent to close at 27 kobo.

Lasaco assurance gained 6.48 per cent to close at N1.15 kobo. Unity Bank added 4.65 per cent to close at 45 kobo. Academy Press also increased by 2.40 per cent to close at N2.13 kobo.

On the activity chart, FBNHoldings 28.366 million shares valued at N303.228 million, Zenith Bank followed with an account of 16.658 million shares worth N361.685 million.

United Bank for Africa exchanged 11.173 million shares worth N78.165 million, Cornerstone Insurance traded 11.139 million shares valued at N7.434 million while Union Bank of Nigeria sold a total of 5.705 million shares valued at N36.538 million.

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