NGX Upgrades BOC Gases Shares to Medium-Priced Stock Group
By Dipo Olowookere
Shares of BOC Gases have been upgraded and placed on the medium-priced stock level from the previous low-priced stock category.
The reclassification became necessary after its equity value has traded at the current group for a period of four of its most recent six months.
The Nigerian Exchange (NGX) Limited puts stocks on its trading platform into three groups; high-priced, medium-priced, and low-priced levels and this is purely 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 price level’s specified price band to be classified into the category.
In a notice on Wednesday, the exchange said a review of BOC Gases’ stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security from the low-priced stock group to the medium-priced stock group.
“This reclassification also necessitates the attendant change in the tick size change from one kobo to 5 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015,” the notice sighted by Business Post explained.
It was further explained that BOC Gases stock price appreciated above the N5 price level on November 16, 2020, and traded above N5 up till the close of business on March 17, 2021.
“This indicates that BOC Gases Plc stock price has traded above N5 in at least 4 months out of the last 6 months.
“Resultantly, BOC Gases Plc has been reclassified from the low-priced stock group to the medium-priced stock group with effect from today, [Wednesday], June 16, 2021,” the disclosure added.
Shares of BOC Gases closed flat today at the stock exchange at N10.55 per unit.