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Following an exchange of correspondence between the Nigerian Stock Exchange (the primary Exchange on which Oando is listed) and the Johannesburg Stock Exchange, the latter has suspended trading on Oando shares.
The action, which happened on Thursday, followed the NSE’s earlier suspension on the oil major as directed by the Nigerian capital market apex regulator – the Securities and Exchange Commission.
The JSE, which confirmed the development, hinged its move on an exchange of correspondence between it and the Nigerian Exchange.
Justifying its action, the South African-based Exchange was quoted to have said, “The company has received communication from its primary listing, the Nigerian Stock Exchange, that the Securities and Exchange Commission has issued a directive to immediately suspend the trading of Oando shares, a directive to which the NSE has complied.
“The JSE has accordingly suspended trading of the Oando shares with effect from 09:00am SA time, pending clarification following the review of subsequent correspondence received on October 18, 2017 from the NSE and SEC and will provide a full statement of the company’s position as soon as possible.”
However, the Nigerian equities market, on Thursday, appreciated marginally by N2bn despite the technical suspension on the shares of Oando by the NSE on Wednesday as directed by the SEC.
Rather, the oil/gas index dropped by 0.5 per cent due to a decline in Forte Oil Plc’s share price by4.2 per cent.
Oando did not respond specifically to the JSE suspension on Thursday, but insisted that it had received a communication from the NSE suspending trading in its shares, as directed by SEC, and that it was reviewing the correspondence.
The oil firm, however, said it would state its position as soon as possible as it was committed to acting in the interest of all shareholders.
Meanwhile, after two consecutive sessions of losses, the Nigerian stock market rebounded as the All-Share Index rose marginally by one basis point to close at 36,645.65 points while year-to-date return improved marginally to 36.4 per cent.
Thursday’s performance was buoyed by price appreciations in Stanbic IBTC Holdings Plc and International Breweries Plc, which appreciated by 2.6 per cent and five per cent, respectively.
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