The Nigerian Stock Exchange (NSE) has signed a Memorandum of Understanding with the Egyptian Stock Exchange, with a view to promoting economic development within the African region, according to Allafrica.com.
The Director General of the NSE, Ndi Okereke Onyiuke who signed the memorandum on behalf of the Exchange at the G-15 capital market workshop held in Cairo recently was quoted as saying that the group agreed that all the stock exchange within the sub-region be integrated for a common understanding in the area of economic growth and development.
Onyiuke who briefed reporters in Lagos Monday stated that the two stock exchanges in Egypt have already been merged to become a single stock exchange known as Egyptian Stock Exchange (ESE).
At the workshop which was attended by 13 developing countries, it was agreed that cross border listing be encouraged among the stock exchanges within the region so as to encourage foreign investment, and thus increase the level of capital market activities, according to the report.
The countries in attendance included: Columbia, India, Indonesia, Iran, Kenya, Malasia, Mexico, Nigeria, Peru, Senegal, Syrilanca, Venezuela and Zimbabwe.
The G-15 member exchanges also agreed to be involved in the vanguard of educating investors on the operations and benefit of capital market.
Also, the G-15 agreed trading of securities through the Internet be encouraged as a gate way to the world. "Foreign investors should have access to the happening in the capital market of the developing countries so that there would be equity in the knowledge of investment opportunities among countries of the world.
Onyiuke also stated that one of the problems facing developing countries is the financial volatility, stressing that bonds market, community market, derivative markets were options suggested by the G-15 to address the issue and increase economic development.
Hence, she urged that the Federal Government of Nigeria should resuscitate the bonds market and other markets like community exchange futures exchange that would deepen the market and thus increase economic activity.
It was also agreed at the workshop that Stock Exchanges in the developing countries de-emphasize on increasing listing and application fees.
This, according to her, is to encourage and attract new firms to the stock market while transactions cost could be increased as those already listed on the Exchange would have the opportunity of supporting the developing capital market in the developing countries.
Member countries were reported to have unanimously agreed that there should be a uniform rule and practices in the capital market operation, "with this the developing countries would have a standard measuring at par with the developed nations.
Furthermore, both the Stock Exchange and the Securities Commission in the developing countries were also advised to strengthen the surveillance and monitoring activity as a way of increasing the integrity and protecting investors interest in the market, said Allafrica – Albawaba.com
