The inclusion followed a review of the prices of stocks by the exchange, undertaken as part of measures to improve liquidity and deepen the market.
With the development, Forte Oil Plc has become the 12th stock on the NSE’s list of High Priced Stock.
Commenting, Head, Market Operations, NSE, Mr. Ade Ewuosho, 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”.
Consequently, stockbrokers will be able to move the prices of Forte Oil Plc, in addition to the existing High Priced Stocks, with 10,000 units. Only these 12 Securities are currently set with a market trade quantity of 10,000, while all the other Securities are set to 50,000.
Justifying the inclusion of Forte Oil in the High Priced Stocks, Mr. Abimbola Babalola, Head, Market Surveillance, NSE, said a review of trading activities of the company in the last six months shows that the company met the criteria set by the Exchange.
“We have observed that the prices of these High Priced Stocks have been rather stable with none falling below the n100 mark which is currently the benchmark,” he stated.