… Price movement resumes tomorrow
By NKIRUKA Nnorom
Following the conflicting signal from the Securities and Exchange Commission, SEC, and the Nigerian Stock Exchange, NSE, on the status of trading on the shares of Oando Plc, Wednesday , the Exchange has said that it acted on the directive of the SEC to maintain status quo on the suspension.
Vanguard gathered that SEC had issued a directive that the technical suspension on the shares of Oando be lifted on Tuesday, April 9 to the effect that the regular price movements resume on the shares by today, but while trading was on going, the stock exchange stopped the brokers from further acting on the earlier directive without explanation.
However, in a statement, the NSE declared that its decision to discontinue price movement on the shares of the company was in compliance with the commission’s instruction.
It, however, said that normal trading and price movement will resume on the shares tomorrow, April 12.
“By a letter dated 9 April 2018 from the Securities and Exchange Commission, the Exchange was directed to lift the technical suspension placed on the trading of Oando’s shares.
In compliance with the Commission’s directive, The Exchange by a letter dated 10 April 2018, informed the Commission that it will lift the technical suspension placed on the shares of Oando effective 11 April 2018. This action was duly effected and trading commenced without any impediment to price movement in the morning of 11 April 2018.
“Subsequent to the lifting of the technical suspension, on 11 April 2018, The Exchange received another communication from the Commission to maintain the status quo prior to the Commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares.
n order to ensure compliance with the Commission’s further communication, notwithstanding the fact that the Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares,” the Exchange explained.
“the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading tomorrow, 12 April 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.
“The Exchange shall endeavor to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter,” the Exchange added.
Though the commission is yet to clarify its position after promising to do so, a source at the commission declared that the SEC is not aware of any directive stopping price movement on Oando after its earlier instruction that normal price movement should resume on the shares.
When contacted, Mr. Bagudu Waziri, Head, Corporate Communication, SEC, said that he is awaiting directive from the Acting DG, Mr. Abdul Zubair, to comment on the issues. According to him, “the Commission will issue an official statement concerning the Oando suspension” but no response was received from SEC as at the time this report was filed.
Recall that trading on Oando shares had been frozen for six months after SEC ordered the suspension to probe alleged insider trading and Oando shareholding structure.