Mobil Oil Plc three others to join “High Priced Stocks”

The Nigerian Stock Exchange (NSE) concluded its review of the prices of stocks, as part of its
plans to improve liquidity and deepen the market, with the announcement of four new
securities that will be joining the league of High Priced Stocks. The four stocks announced
are Mobil Oil Nigeria Plc. Nigerian Energy Sector Fund (NESF), SIM Capital and Skye Shelter
Fund.
Head, Market Operations of The NSE, Mr. Ikponmwosa Obaseki confirmed that way back,
to move the price of any stock upwards or downwards, the brokers needed to have a
volume of 50,000 shares and above. However in September 2012, The NSE introduced a
pilot programme for its new market structure with the rollout of market making, where
stockbrokers could move prices of some high priced stocks with 10,000 shares. These High
Priced Stocks are securities that have traded an average of N100 or more per share in four
out of the last six months period
“The Exchange commenced the pilot programme with five stocks -Dangote Cement,
Guinness Plc, Nestle Plc, Nigerian Breweries and Total Plc. Subsequent to the end of the
pilot programme, The Exchange saw that the prices of these High Priced Stocks have been
rather stable with none falling below the N100 mark, which was the benchmark. Therefore
the Exchange made the programme permanent with only one change, to reduce the review
period from six months to three months.” said Obaseki.
Stockbrokers would be able to move the prices of Mobil Oil Nigeria Plc, Nigerian Energy
Sector Fund (NESF), SIM Capital and Skye shelter Fund in addition to the existing High Priced
Stocks, with 10,000 units with effect from August 6, 2013.”