ASHON Chairman Call for Regular Information from Quoted Companies
The Association of Stockbroking Houses of Nigeria (ASHON) has called on listed companies to regularly provide information on their operations to enable operators and investors make informed investment decisions in the stock market.
The Chairman of ASHON, Chief Patrick Ezeagu made the call during a visit of the association’s executive members to the management of FBN Holdings Plc in Lagos. According to him, the stock market is information driven and quoted companies are obliged by the Nigerian Stock Exchange(NSE)’s post listing requirements to ensure regular dissemination of information to the market to enable stockbrokers serve as a rally point for the market, quoted companies and shareholders.
“It is important that we have regular information concerning what is happening within the companies that are quoted on the exchange so that the brokers will appropriately appreciate the efforts of the people who are running those companies, and know exactly what they are planning to do. This will help stockbrokers to advise their clients effectively. The engagement will be a
continuous one because that is the only way that we can be sure that they are operating in a very transparent manner and that we too are abreast with what is happening within the company’s space. This is because the market is actually driven by information. Prices are made based on perception of the company in question and the value they actually carry. You cannot know the
value except when you get information concerning what they have done, what they are doing at the moment, what they have done and some of the measures that the companies have put in place in order to ensure that they are able to manage their risk,” he said.
Responding, the Group Managing Director, FBN Holdings Plc, Mr. Urum Kalu Eke commended the collaborative efforts of ASHON to move the market forward.
He also hailed ASHON for its series of initiatives, including floating of Lagos Commodity and Futures Exchange (LCFE) as Indices that shall move the capital market to the next level.
Eke explained that FBN Holdings considered it a corporate recognition for being worthy of partnership with ASHON.
“We know the primary role that stockbrokers play in deepening the market and creating awareness. And so, for us, this is a partnership that should be strengthened. I was quite delighted that they have an agreement and understanding on how to move forward in terms of helping to build capacity and I was particularly delighted to learn of the plan to get into commodity exchange that ASHON is promoting. I think it supports the government initiative towards deepening the market. On our part, we are going to provide our platform, which is the First Bank of Nigeria Limited. The commercial bank will support the commodity exchange initiative. We will definitely partner with them. It is a great development for the market.”