Investors at the National Association of Securities Dealers Over the Counter (NASD OTC) market have gained about N121.53 billion in value, between March and June this year, after the market capitalization of the Self-Regulatory Organization printed N652.51 billion in the second quarter of the year (Q2, 2021), thanks to the admission of the Nigerian Exchange Group Limited (NGX), 11 Plc and Capital Bancorp.
Sequel to the admission of the trio, the market capitalization of NASD OTC gained about 22.9% Quarter-on-Quarter, from N530.98 billion recorded in the first quarter of the year (Q1 2021) to N652.51 billion in the second quarter of the year (Q2 2021).
This was revealed by the Head of Operations & I.T, NASD OTC, Chinwendu Ekeh, during the recently concluded ‘’NASD H1 Review’’ held virtually. Key highlight of the half year review showed that;
The number of deals increased from 374 as of the end of Q1 2021 to 2,292 in the second quarter of the year (Q2 2021), indicating a surge of about 511.8% Q-o-Q.
The NSI return gained about 1.05% during the period under review, from 747.01 points in Q1 2021 to 754.88 points in Q2 2021.
Number of companies grew from 39 to 42 during the period.
Trade value also increased from N1.41 billion to N7.75 billion, indicating a surge of about 500% Q-o-Q.
Trade volume surged by about 937% Q-o-Q during the period under review, from 41.27 million to 425.34 million.
Commenting on the drivers of the recent gain in the NASD OTC, Ekeh said, ‘’We could see a considerable spike in our market capitalization at the end of Q2 2021 and our number of deals increased from 374 to 2,292 deals. These spikes or increase in transactions were driven primarily by the addition of three securities. During the quarter, we had the addition of NGX; we also had the addition of Capital Bancorp and 11 Plc as well. So these three securities in addition to the transactions on the existing forty securities we have trading in the market contributed to these increase in numbers.
‘’In Q2, we traded over N7 billion in value, while in Q1 we had about N1 billion, so the entrance of these three securities significantly raised the value of transactions that went through on the NASD. NGX added about N33.43 billion in terms of market capitalization to NASD Market Capitalization.”