Lagos - The Nigerian Stock Exchange (NSE) has placed the shares of Chevron Oil Nigeria Plc were on full suspension following the company’s failure to intimate the regulatory authorities on the divestment and transfer of its shares by a core investor in the company. This means that the shares of the company will not be traded on the floor of the NSE until it is lifted.

The company’s stock closed at N280 a share, a decrease of N10 from the previous day’s unit share price of N290.

Announcing the suspension order on behalf of the Director-General of the NSE, Professor (Mrs.) Ndi-Okereke Onyiuke, on the Lagos trading floor, Mr. Kene Okafor, General Market/Head, Research and Information Technology, disclosed that the company failed to notify the NSE on the divestment of its core investor, and failed to get clearance before going ahead to sell and transfer the shares.

According to him, “Chevron failed to inform the authorities on the divestment of their core investor and it also failed to get clearance before the transfer and sale of same shares. As a quoted company, it is supposed to get clearance from the regulatory authorities before such transfer and sale. It happened that the company was set to sell and transfer without notifying and getting clearance from the NSE. The NSE decided to suspend trading on the company’s shares as a measure of protecting investors.”

He added, “After the suspension, and they later adhere to due process, getting clearance from the regulatory authorities, the suspension would be lifted.”

Meanwhile, the declining fortune of the performance indices was halted on Monday, as the All-share index and market capitalization both appreciated by 0.1 per cent each.

Particularly, the index which opened at 61,418.96 points dropped by 59.5 points to close at 61,478.46 points while the capitalisation closed at N11.85 trillion from N11.84 trillion at which it opened.

Ecobank Transnational Incorporated recorded the highest share price gain, rising by N9.80 to close at N240.90 per share from mN231.10 per share at which it opened, followed by Okomu Oil Palm Plc with a gain of N1.57 to close at N32.99 per share and Cadbury Nigeria Plc garnered N1.50 to close at N38.00 per share.

On the contrary, Nestle Nigeria Plc recorded the highest share price loss, dropping by N12.48 to close at N237.24 per share from N249.72 per share at which it opened, followed by Oando Plc with a loss of N10.09 to close at N230.91 per share and Total Nigeria Plc dipped by N4.95 to close at N237.60 per share.

A significant drop was recorded in trading activities, as equity turnover dipped by 55.19 per cent with a turnover of 398.11 million shares valued at N7.24 billion in 12,730 deals, in contrast to Friday’s turnover of 888.36 million shares valued at N10.03 billion in 15,215 deals.

The Banking sub-sector dominated the other sub-sectors, accounting for 40.93 per cent of the market turnover with 162.93 million shares valued at N4.90 billion in 5,962 deals.

Intercontinental Bank Plc emerged the most active in the sub-sector, trading 33.02 million shares valued at N1.5 billion in 527 deals, followed by Oceanic Bank International Plc with a turnover of 20.5 million shares valued at N578.49 million in 719 deals and Fidelity Bank Plc recorded 15.3 million shares valued at N160.45 million in 224 deals.

The Insurance sub-sector followed on the sectorial analysis, accounting for 33.97 per cent of the market turnover with 135.23 million shares valued at N564.99 million in 2,590 deals.

Universal Insurance Plc recorded the highest transaction in the sub-sector, with a turnover of 38.48 million shares valued at N111.72 million in 757 deals, followed by International Energy Insurance Plc with the exchange of 19.99 million shares valued at N101.21 million in 141 deals and Linkage Assurance Plc recorded 12.09 million shares valued at N44.02 million in 106 deals.

Source: The Vanguard

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