Share Price Depreciation:  Guinness Nigeria loss “high-priced stocks” status on NSE  

Kindly Share This Story:

The Nigerian Stock Exchange (NSE)’s “high-priced stocks” categorisation, are stocks with share prices of N100 and above and regular and pre-determined level of activities.  Following the depreciation in Guinness Nigeri Plc share price recently, and the current upgrading of the NSE on the high-priced stocks Guinness Nigeria Plc was downgraded from its special pricing status category.

Amehnews recalled that, in 2012, the NSE had, alongside the introduction of market making, introduced a pilot programme of where stockbrokers could move prices of “high priced stocks” with 10,000 shares as against the general operating rule of 50,000 shares for the movement of share prices of other stocks. Market sources confirmed that the NSE has formally notified the market of the change in status of Guinness Nigeria.

It was earlier reported that four companies including Forte Oil, Lafarge Africa, Guinness Nigeria and Seven-Up Bottling Company were under watch-list for demotion. With the reclassification of Guinness Nigeria from the “high-priced stocks” list, stockbrokers will only be able to move the share price of the company with 50,000 shares.

With this reclassification of the Guinness Nigeria Plc as from Monday April 3, 2017, the share price is back to old format of pricing stocks by stock broking firms on the floor of the NSE.

The only way this downgrading will not impacts on share price more is when management comes up with information asymmetry in financial markets to improve confidence and return to patronage of the company’s products.


Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings

x