Fidelity bank banner UBA banner
22 non-performing firms delisted from Nigerian Stock Exchange

By Chinyere Joel-Nwokeoma on 13/06/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 403

The Nigerian Stock Exchange (NSE) expelled not less than 22 companies between 2016 and 2017 over non-performance and failure to meet the required post-quotation standards.

Data obtained by the News Agency of Nigeria (NAN) from the exchange showed that the delisted companies included Cappa and D’Alberto, Intercontinental Bank Preference shares, IPWA, G Cappa and West African Glass Industries.

Others were Investment & Allied Insurance, Alumaco, Jos International Breweries, Adswitch, Rokanna, Vono Products, Lennards Nigeria, P.S. Mandrides & Company, Premier Breweries, Costain, Navitus Energy, Nigerian Ropes, Beco Petroleum, M Tech Communication, MTI, UTC and Ashaka Cement.

However, Seven-Up Bottling Company, African Paints and Afrik Pharmaceuticals were delisted in 2018.

Delisting is the process of removing a company from the official list of the stock either voluntarily or by compulsion.

NAN reports that under a voluntary delisting window (which seldom happens), a quoted company can decide to delist from the exchange due to reasons such as merger/acquisition.

On the other hand, the NSE can compulsorily delist a firm when it fails to meet up with post-quotation standards.

The exchange, however, listed only five new companies: The Initiatives, in 2016, while Transcorp Hotels, Global Spectrum Energy Service, Jaiz Bank and Med-View Airline were listed in 2017.

Mr Oscar Onyema, Chief Executive Officer, NSE, said recently that companies in their life cycle would be listed, while others would be delisted over time.

Onyema said the development was the reality that exchanges around the world experienced.

“Companies will delist for different reasons from voluntary to regulatory delisting, mergers and acquisitions and other things that would cause them to delist.

“Our job is to make sure that we make it easy for companies to come in and if they want to leave, that they leave in an orderly manner.

“So, what we have tried to do with our listing rules in the last one to two years is that we have tried to enhance the rules to ensure that companies behave in an orderly fashion,” Onyema said.

Speaking on the issue, Prof. Sheriffdeen Tella of the Economics department, Olabisi Onabanjo University Ago-Iwoye, Ogun, told NAN that the development was due to the economic situation.

Tella said the Nigerian economy had not performed creditably in the last three years. “The economy entered recession in 2015 and started coming out sluggishly towards the end of 2017.

“A depressed economy cannot encourage investments, either direct investment or portfolio investment, which has to do with the stock market activities.

“So, potential new entrants into the stock market were not encouraged to get listed on the market by the state of the economy,” Tella said.

He explained that those that were delisted were companies that either withdrew voluntarily or were removed by market regulators for non-performing, noting that they were all products of recession.

Mr Sola Oni, Stockbroker and CEO, Sofunix Investment and Communications, said the stock market was a barometer that gauges the mood of the economy.

Oni explained that companies had suffered untold hardship during the recession as production costs shot up and the purchasing power of investors dwindled.

According to him, raising fresh capital requires investors’ willingness to buy shares, and that quoted companies had to exercise caution in order not to risk under-subscription.

Oni, however, expressed optimism that the market would pick up going by the positive economic indicators.

“There is light at the end of the tunnel as economic variables are showing positive signals.

“Some quoted companies had successfully floated rights issues and more will follow suit as recession has ebbed away and investors’ hope is on the upbeat,” Oni said. (NAN)

*Pls use Nigerian Stock Exchange

 

Source News Express

Posted 13/06/2018 9:34:42 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Why I am supporting Araraume to become next...

Bishop Ademowo endorses Ambode for second term

Weatherman forecasts thunderstorms across the South today, dust...

20 reported dead as community battles Fulani herdsmen...

Enugu community where unfaithful women run amok

Boko Haram in disarray, fighters surrendering in droves...

Privatisation: ROAD NOW CLEAR FOR KADUNA PHCN CORE...

Google, Facebook agree on code of conduct to...

TUC moves to acquire Unity Bank

US Chibok girl graduate handed over to father...

Disquiet as Suleja Barack is demolished

Need to empower NHIS in regulatory, oversight functions,...

 

Latest News Fayose reports to EFCC as tenure expires Fayemi takes charge in Ekiti as Fayose era ends Missing General: We know the culprits — Army Politics: Bianca disobeyed Ojukwu — MASSOB Cult clash consumes policeman, three others Saraki named DG of Atiku’s Presidential Campaign Okorocha blackmailing and lying against Madumere, says Campaign Organisation Melaye petitions Buhari, alleges assassination plot Fresh trouble for minimum wage FG speaks on Boko Haram’s execution of another Red Cross worker APC reiterates it will field candidates in Zamfara Aide clarifies Umahi’s stand on Peter Obi’s nomination as Atiku’s running mate

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (406,597 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,278 views) Shameless Genevieve Nnaji exposes breasts in public (314,610 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (256,670 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,300 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,242 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (203,997 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,478 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,025 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (165,838 views) Lagos plane crash: Journalist releases victims’ names (161,416 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,233 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,680) Business Verdict (52) Columnists (945) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (659) Global Business Monitor (304) International (2,532) Interview (165) Live Commentary (28) Love Matters (145) News (39,643) Opinion (1,123) Pidgin (13) Politics (7,235) Religion (880) Sports (1,731) Stock Watch (35) AMA & Al Jazeera Global Update

 

Zenith Zero Balance

NLNG Expression of Interest banner

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Fulham vs Arsenal 1-5 All Goals & Extended Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement