Home Markets NSE suspends trading on six firms’ stocks

NSE suspends trading on six firms’ stocks


The management of Nigerian stock Exchange (NSE) has suspended trading on the stocks of six quoted companies for failure to submit their financial reports within stipulated time.

The six companies namely, DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon SALT Plc and Unic Diversified Holdings Plc, have consequently trading in their stocks with effect from Monday 8 October,2018.

The suspension of trading in the stocks was contained n a statement signed by NSE’s Head, Listings Regulation Department, Godstime Iwenkhai.

He stated that dealing members were notified that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), which provides that; “if an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will:

(a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period;

(b) Suspend trading in the Issuer’s securities; and

(c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension”

The NSE spokesperson maintained that in accordance with the rules set forth above, the suspension of the affected companies will only be lifted upon the submission of the relevant accounts and provided the Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

Findings showed that the stock of DN Tyre & Rubber Plc (popularly known as Dunlop) on the equities market which in over the past five years been sold for 50 kobo, started declining February 2018 and it had kept dropping considerably each passing week until July 2018 when it had since stood at 20kobo till date.

The stock of FTN Cocoa Processor Plc which in over the past five years been largely sold for 50 kobo save for September 2014 when it spiked to 57 kobo, started declining at the ending of January 2018 to 20kobo by the end of March 2018, a price which it had retained till date.

The stock of International Energy Insurance Plc had in the last 5 years vacillated between 95 kobo and 38 kobo. The stock had over the past five years recorded an average price of 50 kobo but it in the last 12 months, it had dropped from 50kobo between the ends of March 2018 to 38 kobo its trading for as at today.

The stock of Thomas Wyatt Nigeria Plc had continued to drop considerably in the past 5 years, coming from about 91 kobo to 25 kobo it is as at the day of the NSE suspension.

The stock of Union Dicon had in the last five years, rallied considerably. The stock had rally from N4.22 as at October 2013 to N13.45 which it had stood in the last one year, having attained a peak of N17.35 in the first week of July 2016.

The stock of Unic Diversified Holdings Plc had largely in the last five years stood at 50kobo until the end of January 2018 when it began to drop to as low as 18 kobo before stabilizing back to 20 kobo which it had stood at in the last seven months of trading.