In its efforts to improve liquidity and deepen the equity market, the Nigerian Stock Exchange (NSE) has reviewed the prices of stocks, with the announcement of a new security that will be joining the league of high priced stocks. The stock announced is Lafarge Cement WAPCO Nigeria Plc.
Head, Market Operations of the NSE, Mr. Ade Ewuosho confirmed that the way back, to move the price of any stock upwards or downwards, the brokers needed to have a volume of 50,000 shares and above.
However in September 2012, the NSE introduced a pilot programme for its new market structure with the roll out of market making, where stockbrokers could move prices of some high priced stocks with 10,000 shares. These high priced stocks are securities that have traded an average of N100 or more per share in four out of the last six months period.
Justifying the inclusion of Lafarge Cement WAPCO Nigeria Plc in the High priced stocks head, Market Surveillance of The NSE, Mr. Abimbola Babalola said a review of trading activities of the company in the last six months shows that the company met the criteria set by the Exchange.
“The Exchange commenced the pilot programme with nine stocks -Dangote Cement, Guinness Plc, Nestle Plc, Nigerian Breweries, SIM Capital Fund, Skye Shelter Fund, Nigerian Energy Sector Fund (NESF) and Total Plc. The Programme became permanent in 2013 and the nine initial pilot stocks remained. Lafarge Cement WAPCO Nigeria Plc will become the 10th stock on the programme. We have observed that the prices of these High Priced Stocks have been rather stable with none falling below the N100 mark which is currently the benchmark” said Babalola.
Stockbrokers would be able to move the prices of Lafarge Cement WAPCO Nigeria Plc, in addition to the existing High Priced Stocks, with 10,000 units with effect from April 22, 2014.”