By Dipo Olowookere
One of the leading courier and package delivery company in Nigeria, Red Star Express Plc, has been downgraded to a low-priced stock.
The lowering was done by the Nigerian Stock Exchange few days ago after the stock price dropped below the N5 threshold for over four months.
From September 17, 2018, shares of the company have closed below N5 up till close of business on January 17, 2019.
This indicated that Red Star Express stock price has traded below N5 in four out of the last six months.
The reclassification of Red Star Express from a medium-priced stock to low-priced stock became effective January 28, 2019.
Business Post reports that since January 25, 2019, share price of the logistics company have closed at N5 per unit. It closed at N4.80k per share on January 24, 2019.
The NSE reviews the categories of companies trading their securities on its platform base on their market price. There are three categories of equities; high-priced, medium-priced and low-priced stocks.
The high-priced stocks consist 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. This group has price change with minimum of 10,000 units.
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 Exchange, having price movement with a minimum of 50,000 units.
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, having price change with minimum volume of 100,000 units.
