By Udeme Ekwere
The shares of Afroil Plc, Union Dicon Salt Plc and 13 other companies are still on full suspension by the Nigerian Stock Exchange.
The firms were suspended in July by the NSE for their failure to submit their results for the September and December 2010 financial year ends.
However, of the 26 companies suspended, the NSE has lifted the suspension of 11, leaving 15 firms on the suspension list.
According to a situation analysis of the suspension, the affected companies consist of four from the Insurance sub-sector; two from the Information and Communication Technology; and one each from the Chemical & Paints, Engineering Technology, Food, Beverages & Tobacco, Footwear, Hotel & Tourism, Industrial/Domestic Product, Media, Packaging and Petroleum Marketing sub-sectors.
The affected companies included International Paints for West Africa (IPWA) Plc; Nigerian Wire and Cables Plc; Union Dicon Salt Plc; Lennards Plc; Ikeja Hotel Plc; and Aluminium Manufacturing Company of Nigeria Plc.
Others were ETranzact Plc; First Assurance Plc; African Alliance Plc, Great Nigeria Insurance Plc; MTI Plc, Investment and Allied Assurance Plc; Daar Communications Plc; West African Glass Industries Plc; and Afroil Plc; among others.
The companies, along with 31 others, were initially placed on technical suspension in July, a situation whereby their shares would be traded upon but without movement in the prices of the shares.
A month later, the companies, along with nine others, were placed on full suspension after failing to comply with the directives of the NSE.
As at the close of trading on Tuesday, August 29, 2011, the companies were unable to submit their financial statements, hence the continued suspension of trading on their shares.
While announcing the suspension of the companies, the NSE said that their actions amounted to a violation of the Post-Listing Rules, which stated that Audited annual accounts of companies ought to be submitted within three months of year end.
The statement signed by the Head, Corporate Communications, Mr. Wole Tokede, noted that the NSE and the investing public needed timely financial information from listed companies in other to facilitate stock transactions that would be based on market fundamentals. He said that this was essential for fair price discovery and investor confidence in the capital markets.
He said, “Pursuant to Article 90 of the Exchange’s rules, which states that the Exchange may at its discretion at any time suspend or lift suspension in trading in particular securities.”
Also the shares of five other companies are still on technical suspension for their failure to submit financial statements for the year ended, March 31, 2011.
According to Tokede, the companies are Costain (West Africa) Plc; G.Cappa Plc; Aso Savings and Loans Plc; Union Homes Savings and Loans Plc; and Poly Products Nigeria Plc.
Source: Punch
