By Dipo Olowookere
The Nigerian Stock Exchange (NSE) has announced the reclassification of Nigerian Breweries Plc (NB) Plc from High-Priced Stock Group to Medium-Priced Stock.
In a statement to dealing members, the nation’s stock exchange management said the reclassification became effective from Wednesday, January 9, 2019.
Explaining the rationale behind the downgrading of Nigerian Breweries, the NSE noted that the review of the brewery giant’s stock price trade activity over the most recent six month period provided the basis for reclassifying the security from the High-Priced Stock Group to the Medium-Priced Stock Group.
It emphasised that the stock price dropped below the N100 threshold on August 31, 2018 and traded below N100 up till close of business on December 31, 2018, indicating that Nigerian Breweries Plc stock price has traded below N100 in the 4 out of the last 6 months.
“Resultantly, Nigerian Breweries Plc (NB) will be reclassified from High Priced Stock Group to the Medium Priced Stock Group with effect from January 9, 2019,” the NSE said.
It disclosed further that this reclassification also necessitates the attendant change in the minimum volume required to change the security’s published price from 10,000 units to 50,000 units, as well as a tick size change from 10 kobo to 5 kobo in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).
According to the NSE’s Pricing Methodology framework, equity securities of quoted companies on its trading platform are classified into three Stock Priced Groups or Categories – High Priced, Medium Priced, and Low Priced Stocks – based on their market price.
In this regard, securities must have traded for at least four out of the most recent six month period within a Stock Priced Group’s specified price band to be classified into the category.
Business Post reports that at the close of business yesterday, the share price of Nigerian Breweries at the nation’s bourse was N78.90k per unit.
more recommended stories
FG to Auction N150b Bonds Today
By Dipo Olowookere Federal government of.
T-Bills Yields Weaken to 14.06% on Absence of OMO Auction
By Dipo Olowookere For the second.
Equities Rebound by 0.67% as Investors Gain N81b
By Dipo Olowookere Investors in the.
Asian Equities Finish Mixed on Renewed Trade Tensions
By Investors Hub Asian stocks ended.