NSE reclassifies E-tranzact as low priced stock
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
The Nigerian Stock Exchange (NSE) has announced a reclassification of E-Tranzact International Plc (ETranzact) from a medium priced stock to a low priced stock.
According to the NSE, the decision is due to the fact that ETranzact share price dropped below the N5 mark on 15 February 2018 and has traded below N5 up till close of business on 31 August 2018
The decision is backed up by rule 15.29: pricing methodology, rulebook of the NSE’s 2015 dealing members’ rules.
The NSE explained that for upward or downward movements in price to occur on any low priced stock that is priced below N5 and listed on the NSE, stockbrokers are required to trade a minimum volume of 100,000 units of shares or above.
“These low priced stocks are securities that have traded below N5 per share in four out of the last six months period. Thus ETranzact has traded below N5 over the last 6 months and therefore will be reclassified from medium priced stock to low priced stock effective September 12, 2018,” it explained.