The Nigerian Stock Exchange said trading in the stock of Nigeria’s biggest energy company, Oando, will resume on Thursday, without any further impediment.
The NSE made the clarification on its website following the confusion during trading today, when the suspension of trading in Oando’s shares was lifted in the morning, only to be embargoed later in the day.
NSE in initially lifting the suspension said it was based on a directive by the Securities and Exchange Commission (SEC) which had placed a technical suspension on the stock in October last year.
Midway into trading, NSE stopped trading in the stock, triggering confusion in the market and calls by traders for clarification.
In a statement SEC said that it directed the NSE to lift the technical suspension and allow market determination of the share price.
It said that the shares of Oando were placed on technical suspension in October 2017 upon the announcement of forensic audit which aimed to protect investors as a short term measure.
“Suspensions are typically intended for a short period to ensure market stability and thereafter lifted to allow market dictates.
However, the suspension of the shares of Oando plc was prolonged due to several litigations by Oando and other shareholders contesting the propriety of the forensic audit and technical suspension.
“All litigations have now been withdrawn, the independent forensic audit by Deloitte is ongoing and the primary result is expected”, said the statement.
It said that the commission acted in the interest of shareholders and would continue to protect the interest of all the investors and other shareholders in the capital market.
The statement said that SEC would update relevant stakeholders on the outcome of the forensic audit.
Commenting on the issue, Mr Ambrose Omorodion, the Chief Operating Officer, InvestData Ltd described the actions of the two regulators as unprofessional.
Omorodion said that SEC and NSE needed to correct the impression on time in order not to dampen investors confidence.
“If this impression is not corrected on time, investing public confidence on the regulators will start dwindling which will not be good for the market.
The regulators are expected to have done their due diligence before given any directive”, he said.
NAN reports that Concerned Shareholders of Oando Plc on April 10 urged Federal Government to prevail on NSE and SEC to lift the technical suspension placed on the shares of the company without any further delay. (NAN)