There was mild drama at the Nigerian Stock Exchange (NSE) Wednesday as the crisis rocking Oando Plc took a new twist at the trading session leaving investors and shareholders confused. Problem started after its shares were placed on technical suspension again after an earlier announcement lifting it.
Oando shares had been placed on technical suspension since the disagreement between shareholders and company’s management started in 2017.
A letter signed by Head, Regulations, NSE, Tinu Awe, showed that NSE had notified Ayotola Jagun, the Company’s Secretary, of the resumption of normal trading activities on Oando’s shares which was to take effect from Wednesday, April 11, 2016.
“We refer to all prior communications regarding the technical suspension of trading in the shares of Oando Plc (Oando) implemented on the directive of the Securities and Exchange Commission (commission) on October 23, 2017,” the letter from Awe, NSE Executive Director, Regulation, read.
“Please be informed that further to an April 9, 2018 directive of the commission, the exchange lifted the technical suspension placed on Oando’s shares after the close of trading today, April 10, 2018 and consequently, there will be no impediment to price movement in the shares of Oando when the market opens for trading tomorrow, April 11, 2018.”
According to a source, the Securities and Exchange Commission (SEC) on April 9, 2018 gave NSE a directive to resume trading on the company’s shares yesterday, April 11, 2018.
As directed, trading in the company’s shares began to the excitement of the market with its share price even rising to a N6.30, a 5.8 per cent increase in less than three hours of trading.
But to the chagrin of the general public, SEC later ordered the reversal of the lifting of the technical suspension for no reason.
In a statement yesterday, NSE regretted the stalemate and assured stakeholders that, “in the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission, please be advised that at the start of trading tomorrow (today), April 12, 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with NSE’s market structure.”
Reacting to this development, market watchers lamented that the capital market has been thrown into chaos yet again following what could be described as a dodgy display by SEC and NSE.
Analysts who spoke to Daily Sun on condition of anonymity said NSE and SEC owe it to the general public to give good reason why the show of shame happened.