The Nigerian Stock Exchange (NSE) concluded its review of the prices of stocks, as part of its plans to improve liquidity and deepen the market, with the announcement of a new security that will be joining the league of High Priced Stocks. The stock announced is Forte Oil Plc.
Head, Market Operations of The NSE, Mr. Ade Ewuosho confirmed that “way back, to move the price of any stock upwards or downwards, the brokers needed to have a volume of 50,000 shares and above. However in September 2012, The NSE introduced a pilot programme for its new market structure with the rollout of market making, where stockbrokers could move prices of some high priced stocks with 10,000 shares. These High Priced Stocks are securities that have traded an average of N100 or more per share in four out of the last six months period”.
Justifying the inclusion of Forte Oil Plc in the High Priced Stocks, the bourse’s Head of Market Surveillance, Mr. Abimbola Babalola said a review of trading activities of the company in the last six months shows that the company met the criteria set by the Exchange.
“It can be recalled that the Exchange commenced the pilot programme with nine stocks -Dangote Cement, Guinness Plc, Nestle Plc, Nigerian Breweries, SIM Capital Fund, Skye Shelter Fund, Nigerian Energy Sector Fund (NESF) and Total Plc. The Programme became permanent in 2013 and the nine initial pilot stocks remained” said Babalola.
“In April 2014, Lafarge Cement WAPCO Nigeria Plc became the 10th stock on the programme with Seplat Petroleum Development Company Plc also coming on board in the same month as the 11th stock, based on it being a new security listing that was priced above N100.00 at the time of listing on The Exchange. With this development, Forte Oil Plc has now become the 12th stock on the programme. We have observed that the prices of these High Priced Stocks have been rather stable with none falling below the N100 mark which is currently the benchmark” he added.
Stockbrokers would be able to move the prices of Forte Oil Plc, in addition to the existing High Priced Stocks, with 10,000 units with effect from July 2, 2014. Only these 12 Securities are currently set with a market trade quantity of 10,000; all the other Securities are set to 50,000.
