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After several weeks of steady decline, the stock market opened the week on a promising note as market capitalization and index appreciated marginally yesterday over those of Thursday and Friday last week.

The suspension of Chevron Oil Nigeria Plc notwithstanding, market capitalization rose to 11.854 trillion from 11.842 trillion on Friday. In the same vein, the market index rose to 61,478.46 points from 61,418.96 points last Friday.

The banking sector was the most traded equity as the sector recorded approximately 163 million in 5,926 deals worth close to N5 billion as against 135.2 million units traded on insurance in 2,590 deals worth N564.987 billion.

At the close of trading, a total volume of 398.12 million stocks changed hands in 12,730 deals worth N7.239 billion. However, price slash continued as only 54 equities witnessed a price rally over 62 that made loser's list.

Ecobank Transactional Incorporated led the price gainers with 980 kobo followed by Okomu Oil with 157 kobo, both closing at N240.90 and N32.99 respectively. Cadbury, Dangote Sugar and Unilever gained 150 kobo, 127 kobo, and 102 kobo to close at N38.00, N36.50 and N24.05 in that order. Bank PHB, United Bank for Africa, Glaxo Smithkline, BOC Gases and Cutix Plc appreciated in prices.
Leading the price losers, Nestle lost N12.48, followed by Oando with N10.09 and Total with 495 kobo to close at N237.24, N230.91 and N237.60 in that order. Mobile Oil Plc dropped from its week-long lead on the gainerís table, losing 299 kobo.

Just as Nigerian Bottling Company lost 295 kobo to book a place among the top ten losers ñ closing at N280.01 and N58.00 respectively. Other top ten price losers were Chemical and Allied Products Plc, Benue Cement, Ashaka Cement, Eterna Oil and Arbico which lost 235 kobo, 229 kobo, 220 kobo, 179 kobo and 128 kobo to close at N52.00, N43.86, N46.00, N34.18 and N24.44 in that order.
The authorities of the Nigerian Stock Exchange (NSE) have slammed a full suspension on the Chevron Oil Nigeria Plc for “a breach of post-listing requirement.”

By this punishment, trading on the stock of the coy is automatically put on hold pending when the company gets clearance from the Exchange.
Announcing the punitive measure on the Lagos floor of the Exchange, the NSE, head of information and control, Mr. Kene Okafor said that trading on the equities of the company had to be suspended in the interest of investors.

He explained that the blue chip failed to inform the market authorities about planned divestment of their core-investor, Chevron USA which is believed to own a 60 per cent stake in the foremost oil company in Nigeria.

In his words: “the company ought to inform us properly whether the information is negative or positive. The market thrives on information. If listed companies are not forth-coming in terms of giving us information on what is going on in their companies, how do we, as market operators, advise the investing public? For this breach of post-listing requirement a full suspension have been slammed on Chevron oil stocks.”

Daily Sun gathered that the company was on the verge of selling and transferring the stakes of Chevron USA when NSE eventually stumbled on the secrete deal which did not go down well with the authorities. It was further gathered that Exchange had to quickly swing into action by making sure that the equities did not take place yesterday.

Consequently, the stock did not feature on the index table suggesting that the Exchange actualized its quick decision as a way of protecting the interest of investors and sustain public confidence on the Exchange.

Meanwhile, stockbrokers have hailed the decision. Those who spoke with Daily Sun said that, as a listed company, Chevron management ought to properly inform the market operators of the development.

“They didn’t do what they are supposed to do as a quoted company. They were supposed to get clearance for such material information from NSE. It happened that tried to sell and transfer without clearance and notifying the NSE in the interest of investors. This is reprehensible” a stockbroker said.
He, however, added that the suspension would be lifted after clearing the authorities and they are satisfied eventually.