New Trading Engine To Prolong Stock Market Decline – Report

[Shola Sholaz]

The introduction of the new trading engine, X Gen, by the Nigerian Stock Exchange, NSE, will likely prolong the current downturn in the stock market in the last quarter of the year, said analysts at BGL Securities Limited.
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In its review of capital market activities for nine months to September, 2013 and outlook for fourth quarter and 2014, the equity research firm said, "A number of key developments in the stock market in recent times worthy of note include the September 30th migration of the NSE trading platform to the X- Gen platform, a modern and robust trading platform with multifunctional capabilities.
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"The platform is set to change the structure of transaction in the market as it allows order automation, multiple channels interaction and real time integration of stockbrokers' web access to the market such that investors can see and may be trade directly through their brokers' platform real time."
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However, "The learning curve for brokers on the use of the newly installed X-Gen trading platform is expected to contribute to the current drag in the performance of the stock market in the last quarter of the year," BGL affirmed.
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In the report titled, "Economic Note: The Nigerian Capital Market in the First Three Quarters of 2013", BGL team said the market is consequently expected to close with about 30 percent performance.