The Nigerian Stock Exchange, NSE, on Tuesday reclassified E-Tranzact International Plc (ETranzact) from Medium Priced Stock to Low Priced Stock.
The decision, the NSE said in a statement, was taken in compliance with ‘Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015,’ on dealing members.
The statement, signed by Joseph Kadiri, NSE’s media officer, said ETranzact traded below N5 in the last six months.
“ETranzact dropped below the N5 mark on 15 February 2018 and traded below N5 up till close of business on 31 August 2018,” the statement said.
“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.”
The Nigerian bourse explained that for upward or downward movements in price to occur on any Low Priced Stock that is priced at below N5 and listed on The NSE, stockbrokers are required to trade a minimum volume of 100,000 units of shares or above.
Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.