Investors on the Nigerian Stock Exchange (NSE) cumulatively lost about three billion naira to technology failure that led to closure of the market. On the average, NSE daily turnover, in value terms, stands at between N3 billion and N3.5 billion.
The investors lose followed the inability of Africa’s second largest bourse, the NSE, to trade as the trading platform malfunctioned repeatedly. Investigations showed that brokers were not able to consummate their clients order.
A senior broker who confirmed the development, said brokers were disappointed that trading was halted due to technical problem. The broker who said that investors had lost billions of naira expressed disappointment that the management of NSE failed to inform them on the nature of the problem.
“The situation is very embarrassing and even to the NSE and will become a serious issue if it lasts for more than one day,” he said. He urged the Exchange to ensure that there would be trading on Friday to avoid further embarrassment and loss of investment by both local and foreign investors. Also speaking, Mr Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), said that investors would bear the loss if it was caused by technical issue. Nwosu said that investors would seek redress if non-trading was as a result of power tussle by NSE management.
He said that investors were awaiting exchange’s public pronouncement on the issue to take decision. The NSE in 2013 migrated to a new trading platform called X-Gen from Horizon which had been in use since 1999. The introduction of X-Gen, according to NSE, stem from its quest for an emerging market structure with 21st century technology to build scope and efficiency. The new trading engine then was described as the fastest trading engine in Africa. The X-Gen cost the management of NSE ten million dollars (about N1.5 billion).
However, Mrs Nwando Ajene, NSE Head Corporate Communications, attributed the development to network problem. Ajene said that the NSE had to shut down its X-Gen trading platform due to the network problem. She, however, said that some brokers traded.