Six Months After, NSE Lifts Suspension of Oando Shares

oandoOando Plc
  • Six Months After, NSE Lifts Suspension of Oando Shares

The Nigerian Stock Exchange lifted the technical suspension placed on the shares of Oando Plc on Wednesday, following a directive from the Securities and Exchange Commission, the bourse said.

But the NSE said it had to suspend trading in the company’s shares the same day after SEC rescinded its earlier decision to lift the suspension.

Trading on Oando shares had been frozen for six months after SEC ordered the suspension to probe alleged insider trading and the oil company’s shareholding structure.

The NSE notified Oando on the lifting through a letter dated April 10, 2018.

The letter, a copy of which was made available to our correspondent by Oando, read in part, “We refer to all prior communication regarding the technical suspension of trading in the shares of Oando Plc (Oando) implemented on the directive of the Securities and Exchange Commission on 23 October 2017.

“Please be informed that further to a 9 April 2018 directive of the commission, the Exchange lifted the technical suspension placed on Oando’s shares after the close of trading today, 10 April 2018. Consequently, there will be no impediment to price movement in the shares of Oando when the market opens for trading tomorrow, 11 April 2018.”

Oando shares resumed trade at N6.30, after last closing at N5.99 six months ago.

The NSE, in a statement on Wednesday evening to clarify and confirm the status of trading in the shares of Oando, said it was directed to lift the technical suspension by a letter dated April 9, 2018 from SEC.

It said, “In compliance with the commission’s directive, The Exchange by a letter dated 10 April 2018, informed the commission that it will lift the technical suspension placed on the shares of Oando effective 11 April 2018. This action was duly effected and trading commenced without any impediment to price movement in the morning of 11 April 2018.

“Subsequent to the lifting of the technical suspension, on 11 April 2018, The Exchange received another communication from the commission to maintain the status quo prior to the commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares. In order to ensure compliance with the commission’s further communication notwithstanding the fact that the Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: samed@investorsking.com.

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