Why we suspended trading of Oando shares – NSE

The Nigerian Stock Exchange, NSE, on Wednesday clarified the suspension of trading in the shares of Oando plc for two days.

The NSE, in a notice Wednesday afternoon, said it was acting based on the directive of the Securities and Exchange Commission, SEC.

PREMIUM TIMES had earlier reported that SEC on Wednesday morning directed the full suspension on trading in the shares of the oil firm following petitions forwarded to it by aggrieved stakeholders.

Tinuade Awe, General Counsel and Head of Regulation at the NSE, said the full suspension is effective for 48 hours from Wednesday to Friday, after which it would commence a technical suspension until further directive.

“A full suspension is the halt of trading activities in a listed security for a period,” Ms. Awe said.

“A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.”

The NSE affirmed that in the 48 hour period commencing Wednesday, there will be no trading in the shares of Oando Plc.

From Friday, investors will be able to trade in Oando Plc’s shares but such trading will not result in any movement in the price of the shares, the statement explained further.

Meanwhile, efforts to reach Oando Plc on the suspension remained futile.

But according to Reuters, the company said it would issue a statement later.

Oando, which enjoys dual listings in Johannesburg and Toronto, has been enmeshed in crisis in recent time.

In September, a group of aggrieved shareholders attempted to disrupt its Annual General Meeting in Uyo, Akwa Ibom state.

The shareholders accused the company management of gross misconduct and called for removal of its head, Wale Tinubu.