Post Views: 147 Management of the Nigerian Stock Exchange (NSE), on Wednesday, January 9, 2019, announced a downgrade of Nigerian Breweries Plc, from ...
Management of the Nigerian Stock Exchange (NSE), on Wednesday, January 9, 2019, announced a downgrade of Nigerian Breweries Plc, from the High Priced Stock to Medium Priced Stock Group.
This, it said, followed the drop in its share price below the N100 per share benchmark, which leaves on Dangote Cement, Nestle Nigeria and Seplat Petroleum Development Company in the prestige group.
A statement said this move is in line with the NSE’s Pricing Methodology framework.
It explained that “equity securities of Quoted Companies on The Nigerian Stock Exchange (NGSE) are classified into three Stock Priced Groups or Categories – High Priced, Medium Priced, and Low Priced Stocks – based on their market price.
“In this regard, securities must have traded for at least four out of the most recent six month period within a Stock Priced Group’s specified price band to be classified into the category,” he added.
The review of Nigerian Breweries Plc stock price trade activity over the most recent six month period, he continued, provides the basis for reclassifying the security from the High Priced Stock Group to the Medium Priced Stock Group.
This reclassification, he stressed, also means the minimum volume required to change NB’s published price changes from 10,000 units to 50,000 units, as well as a tick size change from N0.10kobo to N0.05kobo – in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).
“Nigerian Breweries Plc stock price dropped below the N100 threshold on 31st August 2018 and trades below N100 up till close of business on 31st December, 2018. This indicates that Nigerian Breweries Plc stock price has traded below N100 in the 4 out of the last 6 months. Resultantly, Nigerian Breweries Plc (NB) will be reclassified from High Priced Stock Group to the Medium Priced Stock Group with effect from today, 9th January, 2019.”