The Nigerian Stock Exchange (NSE) has announced the reclassification of E-Tranzact International Plc (ETranzact) from Medium Priced Stock to Low Priced Stock.
The decision was in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).
Under the rule, for upward or downward movements in price to occur on any Low Priced Stock that is priced at below N5 and listed on the bourse, stockbrokers are required to trade a minimum volume of 100,000 units of shares or above.
According to the market’s guidelines and rules enforcement agency (NSE), the Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.
ETranzact International Plc’s stock price dropped below the N5 mark on 15 February 2018 and traded below N5 up till close of business on 31 August 2018, thereby making the company subjected to the enforcement of the rule.
The reclassification of the company from Medium Priced Stock to Low Priced Stock by the NSE becomes effective from Wednesday, September 12, 2018.
