NSE Downgrades eTranzact to Low-Priced Stock

By Dipo Olowookere

ETranzact International Plc has been reclassified from a medium-priced stock to a low-priced stock by the Nigerian Stock Exchange (NSE).

This followed the trading of the company’s equities by investors below the N5 per share mark in the last six months.

According to a statement issued on Tuesday by spokesman of the stock market regulator, Mr Joseph Kadiri, the downgrading of eTranzact was in compliance with ‘Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015,’ on dealing members.

“ETranzact dropped below the N5 mark on 15 February 2018 and traded below N5 up till close of business on 31 August 2018.”

“Thus, ETranzact has traded below N5 over the last 6 months and therefore will be reclassified from Medium Priced Stock to low priced stock effective September 12, 2018,” the statement said.

The NSE classifies stocks into three categories; high-priced, medium-priced and low-priced based on their market price.

The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the NSE.

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

While stocks under high-priced group have price change with minimum of 10,000 units; stocks under medium-priced group have price movement with a minimum of 50,000 units; and stocks under low-priced group have price change with minimum volume of 100,000 units.