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Nigeria: Forte Oil joins high-priced stocks

The Nigerian Stock Exchange says Forte Oil has become the 12th high- priced stocks, following the review of the prices of stocks.

A statement by the Head, Corporate Communications, NSE, Nwando Ajene, said the review was part of the Exchange???s plans to improve liquidity and deepen the market.

The statement quoted the Head, Market Operations, NSE, Mr. Ade Ewuosho, as saying that in the past, brokers needed to have a volume of 50,000 shares and above to move the price of any stock upwards or downwards.

He added, ???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 Head, Market Surveillance, NSE, Mr. Abimbola Babalola, explained that Forte Oil was included in the high priced stocks because a review of trading activities of the company in the last six months showed that it met the criteria set by the Exchange.

Babalola said, ???It can be recalled that the Exchange commenced the pilot programme with nine stocks ??? Dangote Cement, Guinness Plc, Nestle Plc, Nigerian Breweries, SIM Capital Fund, Skye Shelter Fund, Nigerian Energy Sector Fund and Total Plc.

The programme became permanent in 2013 and the nine initial pilot stocks remained.???

He added that Lafarge Cement WAPCO Nigeria Plc became the 10th stock on the programme in April 2014 with Seplat Petroleum Development Company Plc also coming on board in the same month, based on it being a new security listing that was priced above N100.00 at the time of listing on the Exchange.

???With this development, Forte Oil Plc has now become the 12th stock on the programme,??? Babalola said.