Following an exchange of correspondence
between the Nigerian Stock Exchange (the primary Exchange on which Oando
is listed) and the Johannesburg Stock Exchange, the latter has
suspended trading on Oando shares.....
The action, which happened on Thursday,
followed the NSE’s earlier suspension on the oil major as directed by
the Nigerian capital market apex regulator – the Securities and Exchange
Commission.
The JSE, which confirmed the development, hinged its move on an exchange of correspondence between it and the Nigerian Exchange.
Justifying its action, the South
African-based Exchange was quoted to have said, “The company has
received communication from its primary listing, the Nigerian Stock
Exchange, that the Securities and Exchange Commission has issued a
directive to immediately suspend the trading of Oando shares, a
directive to which the NSE has complied.
“The JSE has accordingly suspended
trading of the Oando shares with effect from 09:00am SA time, pending
clarification following the review of subsequent correspondence received
on October 18, 2017 from the NSE and SEC and will provide a full
statement of the company’s position as soon as possible.”
However, the Nigerian equities market,
on Thursday, appreciated marginally by N2bn despite the technical
suspension on the shares of Oando by the NSE on Wednesday as directed by
the SEC.
Rather, the oil/gas index dropped by 0.5 per cent due to a decline in Forte Oil Plc’s share price by4.2 per cent.
Oando did not respond specifically to
the JSE suspension on Thursday, but insisted that it had received a
communication from the NSE suspending trading in its shares, as directed
by SEC, and that it was reviewing the correspondence.
The oil firm, however, said it would
state its position as soon as possible as it was committed to acting in
the interest of all shareholders.
Meanwhile, after two consecutive
sessions of losses, the Nigerian stock market rebounded as the All-Share
Index rose marginally by one basis point to close at 36,645.65 points
while year-to-date return improved marginally to 36.4 per cent.
Thursday’s performance was buoyed by
price appreciations in Stanbic IBTC Holdings Plc and International
Breweries Plc, which appreciated by 2.6 per cent and five per cent,
respectively.
Gaining over N1bn, the NSE market
capitalisation inched higher to close at N12.6i4tn while volume and
value traded declined 29.1 per cent and 41.3 per cent to settle at 140.9
million units and N1.7bn, respectively.
Sector performance was mixed as three of
the five indices of the market were negative, one closed positive and
the other flat. The insurance index led losers, down by 1.3 per cent on
account of losses in AxaMansard Insurance Plc and AIICO Insurance Plc
by 4.8 per cent and 3.4 per cent, accordingly.
Similarly, the banking index fell by
0.3 per cent following sustained profit taking in United Bank of Africa
Plc and Zenith Bank Plc, which declined by 2.3 per cent and 0.2 per
cent, accordingly.
However, the consumer goods index was
the lone gainer, appreciating 0.2 per cent on account of gains recorded
in International Breweries Plc and Dangote Sugar Refinery Plc, which
soared by five per cent and 1.1 per cent, respectively.
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