Dipo Olowookere
By Dipo Olowookere
As at the close of business on Tuesday, May 19, 2020, trading in the shares of 13 companies listed on the Nigerian Stock Exchange (NSE) has remained prohibited, an investigation by Business Post has revealed.
The affected firms, according to a document obtained from the exchange, were suspended by the management of the NSE for failure to adhere to one of the listing rules.
It was observed that the companies had their stocks suspended from the trading platform because they did not release their financial statements for the investing community to consume.
Most investors rely on the financial books of publicly quoted organisations to make critical investment decisions and the suspended companies have failed to make theirs available for public consumption, an act the exchange frowns at.
An analysis by Business Post showed that out of the 13 firms, five have been suspended since 2017, while another five have had trading in their equities stopped since 2018, with only three remaining inactive at the exchange since 2019.
The three of 2019 were among the 11 companies punished by the exchange on July 2, but the other eight, which later released their earnings, had their embargoes lifted by the NSE and were then fined for the infraction as stipulated by the rules.
The implication of the suspension in the stocks of these 13 organisations is that their share prices have remained static since they were suspended by the stock exchange authorities.
The identities of those suspended since 2017 are Nigerian German Chemical Plc, Roads Nigeria Plc, Aso Savings and Loans Plc, Evans Medical Plc, and Union Homes Savings and Loans Plc.
Those suspended since 2018 are Multi-Trex Integrated Foods Plc, International Energy Insurance Plc, Unic Diversified Holdings Plc, DN Tyre & Rubber Plc, and STACO Insurance Plc.
The three companies, whose shares have remained inactive as a result of the embargo since July 2019 include Goldlink Insurance Plc, Resort Savings & Loans Plc, and Standard Alliance Insurance Plc.
Until these firms release their financial statements, their shareholders will not be able to offload or acquire more stocks of the companies. They will have to wait till the earnings are filed to the NSE.
