The Nigerian Stock Exchange (NSE) has announced the suspension of trading in the shares of six companies listed on the local bourse over failure to file their financial accounts as stipulated in the rules of the exchange.
Suspension in the shares of a company implies investors and shareholders of the company would not be able to trade their equities, leaving the share price of the suspended stock unchanged.
The suspended companies, which are majorly manufacturing companies, include FTN Cocoa Processors Plc, DN Tyre & Rubber Plc, International Energy Insurance Plc, Union Dicon Salt Plc, Thomas Wyatt Nigeria Plc and Unic Diversified Holdings Plc.
The announcement was contained in a notice on Monday by NSE Head of Listings Regulation Department, Godstime Iwenekhai.
According to the notice, the suspension of trading in the shares of the six companies takes effect from Monday, October 8, 2018.
The exchange explained that the companies were suspended pursuant to Rule 3.1 of the rules for filing of accounts and treatment of default filing.
The rule provides that, “If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within twenty-four hours of the suspension.”
NSE said the suspension of the listed companies would only be lifted upon the submission of the relevant accounts and provided the exchange is satisfied that the accounts comply with all applicable rules.
Before the announcement of the suspension, the shares of FTN Cocoa Processors Plc, DN Tyre & Rubber Plc, and Unic Diversified Holdings Plc all closed flat last Friday at 20 Kobo per share on the floor of NSE.
International Energy Insurance Plc and Union Dicon Salt Plc also closed flat, but at 38 Kobo and N13.45 per share, respectively. Thomas Wyatt Nigeria Plc depreciated by 8 percent to close at 23 Kobo per share before it was suspended by the domestic bourse.
Meanwhile, performance on the floor of the NSE is currently bullish with the key performance index of the NSE, the All-Share Index (ASI), which opened at 32,383.15 points, already adding over 80 points.
This is coming after the market recorded negative performance in all trading sessions last week to close the full week in red.
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