The Nigerian Stock Exchange (NSE) has suspended trading on seven insurance stocks and RT Briscoe, for failure to submit 2017 audited accounts and statements.
The exchange, in a notice to dealing members, listed the insurance firms to include African Alliance Insurance, Cornerstone Insurance, Royal Exchange, STACO Insurance, Standard Alliance Insurance, Universal Insurance Company and Veritas Kapital Assurance.
the development, which is aimed at enforcing rules and ensuring compliance, is also coming after many companies on the bourse have faced similar fate.
The exchange explained that the suspension of trading in the shares of the affected companies has been effective since July 5, 2018, noting that it would only be lifted upon the submission of the relevant accounts.
It added that the accounts must duly comply with all applicable rules of the exchange.
The Managing Director, APT Securities and Funds Limited, Malam Garba Kurfi, pointed out that companies with December 31, 2017, financial year end, were expected to submit their accounts in March, noting that four months after the year end, the affected companies had failed to submit their accounts for informed investment decision.
He added that trading and investment decisions on these companies were based on speculation, which is capable of eroding investors’ confidence in the market.
Meanwhile, the NSE All-Share Index and market capitalisation depreciated by 1.71 per cent to close the week at 37,625.59 and N13.630 trillion at the end of last week’s transactions.
Similarly, all other indices finished lower with the exception of the NSE Insurance Index that appreciated by 0.53 per cent.
Furthermore, a turnover of 1.842 billion shares worth N16.594 billion was recorded in 18,941 deals by investors on the floor of the exchange, lower than 2.004 billion shares valued at N21.582 billion that were exchanged in 18,534 deals during the preceding week.
The financial services industry (measured by volume) led the activity chart with 1.018 billion shares valued at N10.906 billion traded in 10,092 deals; thus contributing 55.28 per cent to the total equity turnover volume and value respectively.
The services industry followed with 313.481 million shares worth N1.861 billion in 782 deals.
The natural resources industry ranked third with a turnover of 304.922 million shares worth N61.366 million in 82 deals.
Trading in the top three equities– United Bank for Africa Plc, Multiverse Mining and Exploration Plc and Nigerian Aviation Handling Company Plc accounted for 912.300 million shares worth N5.308 billion in 1,025 deals, contributing 49.53 per cent to the total equity turnover volume.
Also, 27 equities appreciated in price during the week, lower than 32 in the previous week. 45 equities depreciated in price, higher than 39 equities of the previous week, while 97 equities remained unchanged lower than 98 equities recorded in the preceding week.
Still in the week, 25,220 units of Exchange Traded Products (ETPs) valued at N454,438.90 were executed in four deals, compared with a total of 4,211 units valued at N96,115.90 that was transacted last week in 18 deals.
Credit: The Guardian