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Monday, March 20, 2023

NASD Records Pre-tax Loss of N11.9 million for 2020

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Nigerian Over the Counter (OTC) securities trading firm NASD Plc has recorded a pretax loss of N11.991 million to close out the 2020 financial year.

In 2020, NASD saw a decrease in both transaction income and investment income in comparison to activity of 2019.

NASD generated transaction fees of N103 million – 25.9 percent less than the N139 million earned in 2019.

Prevailing interest rates declined from the 3rd quarter of 2020 to 11.5 percent and the potential negative impact of this was dampened somewhat with the switch to more active fund management through the year.

NASD therefore recorded investment income of N51.8 million compared to the N65.7 million recorded in 2019.

In a bout of cost cutting amid the coronavirus pandemic, total expenses for the firm fell to N188.2 million compared to the N193 million recorded in the corresponding period of 2019.

Overall, market turnover was 21.08 percent higher in 2020 than in 2019 in value terms.

This however was significantly below the anticipated value at the beginning of the year in the company’s budget due to the unexpected effect of the lockdown and pandemic, NASD said in its annual report.

The NASD Security Index (NSI) in the year 2020 however recorded a 6.29 percent increase to close the year at 733 and market capitalisation rose 4.95 percent from N501.14 billion at the beginning of the year to N525.95 billion; the increase of the NSI and Market cap were due to the newly added securities – GNI, Newrest PLC and VFD Group.

Dematerialised shares available to trade also rose from 45.02 percent in 2019 to 69.18 percent in 2020.

“We shall continue to encourage securities to register with the SEC so they can be dematerialised into the market as we aim for 100% dematerialisation of public shares,” said Bola Ajomale Managing Director/CEO of NASD.

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