By Dipo Olowookere
One of the leading energy companies operating in the country, Oando Plc, has lost its status as a medium-priced stock after its reclassification to a low-priced category.
This downgrade of Oando stock was done by the Nigerian Stock Exchange (NSE), the agency empowered to pilot affairs of the nation’s stock market.
A statement issued by the NSE disclosed that Oando dropped into the new category effective Thursday, September 5, 2019 (today).
This action by the NSE on the energy firm came after shares of Oando dropped below the N5 mark on Tuesday, April 30, 2019, and traded below N5 up till close of business on Friday, August 30, 2019.
As a result of this development, the NSE lowered the status of the company’s stock in compliance with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).
“The Nigerian Stock Exchange (The NSE or The Exchange) is pleased to announce the reclassification of Oando Plc from Medium Priced Stock to Low Priced Stock effective Thursday, September 5, 2019.
“This is in compliance to Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules),” the statement said.
“Oando dropped below the N5 mark on April 30, 2019, and traded below N5 up till close of business on 30 August 2019,” it added.
Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period. For upward or downward movements in price to occur on any Low-Priced Stock that is priced at below N5 and listed on the NSE, stockbrokers are required to trade a minimum volume of 100,000 units and tick size of N0.01kobo.
