Reversing negative trend in Nigeria's unlisted market

The NASD Over-the-Counter Securities Exchange has been facing challenging times as the Year-to-Date performance continues to dip due to negative movements in prices. Dare Fajimolu, Head of Research and Strategy at NASD PLC, shed light on the factors driving sentiments in the unlisted market during an interview with CNBC Africa. The conversation delved into the evolving nature of the market, the importance of the broad scope it now encompasses, and the reasons behind the bearish trend that has been prevalent. Fajimolu highlighted the impact of prize movements driven by heavyweights like Friesland One Coke and other companies that have recently undergone corporate actions. Despite the current challenges, there is optimism for a reversal in market sentiment. The classification of unlisted securities has undergone a transformation over time, expanding to include primary and secondary market activities. The NASD platform now caters to both listed and unlisted companies, offering a diverse range of financial instruments such as debt and equity. Fajimolu emphasized that the NASD has evolved into an alternative asset exchange, while still retaining its focus on the unlisted segment. This broader scope not only deepens the market but also attracts a wider array of investors, enhancing liquidity and participation. One of the key drivers behind the bearish sentiment in the market has been prize movements influenced by major players like Friesland One Coke. Corporate actions such as bonuses and dividends have led to price adjustments that are yet to fully recover, exerting downward pressure on the market index. Additionally, companies like CSCS have also contributed to the decline in volume and value. Despite these challenges, there is a concerted effort to stimulate interest and reverse the negative trend. Investors and market players are closely monitoring the developments in Nigeria's unlisted market, seeking opportunities amidst the current turbulence. The potential for growth and profitability remains attractive, with the market poised for a turnaround in sentiment. As companies navigate the evolving landscape and adapt to changing investor preferences, the resilience of the market will be tested. Fajimolu's insights provide valuable perspectives on the dynamics at play and the strategies needed to navigate the challenges and capitalize on the opportunities in Nigeria's unlisted market.