The Nigerian Stock Exchange (NSE), has announced the reclassification of Oando Plc from a Medium Priced Stock to a Low Priced Stock effective Thursday, September 5, 2019.
The decision was taken after Oando’s stock dropped below the N5 mark between April 30, 2019 and August 30, 2019. This, according to the exchange is in compliance to Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015.
Low Priced Stocks are securities that have traded below N5 per share in four out of six month’s period. For upward or downward movements in price to occur on any Low Priced Stock that is priced 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.
[READ MORE: Oando PLC Announces Significant Gas & Condensates Discovery]
Meanwhile, the Nigerian Stock Exchange’s market capitalisation on Thursday shed N33 billion at the end of trading.
Specifically, the market capitalisation which opened at N13.290 trillion lost N33 billion to close at N13.257 trillion. Also, the All-Share Index dipped from 27,319.64 to 27,252.09, within the same period.
The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are Nestle Nigeria, Guinness Nigeria, Dangote Cement, Forte Oil and MTN Nigeria.
Capital market analysts attributed the development to the weak state of the economy. A stockbroker with Meristem Securities, Mr. Tunji Soyinka, said, “The market will remain bearish for a while, especially the equity segment due to the unimproved state of the economy.”
[READ MORE: South African firm to sell stake in Oando office tower]
The market closed negative with 13 gainers against 17 losers.
Guinness dominated the losers’ chart with a loss of 9.90 per cent to close at N37.30per share.
Ikeja Hotel followed with a decline of 9.79 per cent to close at N1.29, while Forte Oil declined by 9.73 to close at N14.85 per share, UPDC Real Estate Investment Trust lost 9.26 per cent to close at N4.90.
