The Securities and Exchange Commission (SEC) has suspended Indefinitely trading in shares of Afroil Plc and Capital Oil Plc across the floors of the Nigerian Stock Exchange (NSE).
A release by SEC's Head of Media, Mr. Lanre Oloyi in Lagos, said that the suspension was a fall-out of the investigation conducted by the Commission on the activities of the two companies.
It said that the action was to protect the investing publics and warned stockbrokers to avoid trading in the shares of the companies. SEC questioned what it called "illogical and astronomical rise in the share prices of the companies'' when they were not submitting statutory reports.
The Commission said its investigation revealed that during the period of the price growth, the two companies were basically out of business.
"The basis for continued trading and rise in the prices of their shares on the NSE no longer exists and the investing public must not be deceived,'' SEC said.
The News Agency of Nigeria (NAN) recalls that SEC had, on February 14, 2008, said it was conducting investigation into the activities of five companies, accusing some of them of insider trading and price manipulation.
Courtesy of Proshare
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