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24 Companies Placed on Full Suspension – NSE

By on August 3, 2011

The Nigerian Stock Exchange, NSE, has suspended trading on the shares of Dangote Flour Mills, Union Dicon Salt Plc, Etranzact Plc and 21 other companies for their failure to submit their financial statements for the year 2010.

The other companies are: International Paints for West Africa, IPWA Plc, Premier Paints Plc, Omatek Ventures Plc, Nigerian Wire & Cable Plc, P.S. Mandrides & Company Plc, Lennards Plc, Morison Industries Plc, Ikeja Hotel Plc, Aluminium Manufacturing Company of Nigeria Plc, First Assurance Plc, African Alliance Insurance Plc, Great Nigeria Insurance Plc, Guinea Insurance Plc, Standard Aliance Plc, MTI Plc, Invesment & Allied Assurance, Daar Communication Plc, Resort Savings & Loans Plc, West Africa Glass Industries Plc, Afroil Plc and United Nigeria Textiles Plc.

The NSE, had last month, sanctioned the companies, placing their shares on technical suspension — a situation whereby the shares of the companies will be traded upon, there would be no movement on the prices of the shares.

The companies were given one month to present their financial statements, failure in which their shares will be placed on full suspension. With the full suspension, shares of the companies will not be traded on the floors of the NSE, until the sanction is lifted.

The failure of the affected companies to submit their financial statements for the year ended, December 31, 2010, according to the NSE, is a violation of the Post-Listing Rules of The Exchange as contained in Key Issue No. 5 (Annual Accounts Procedures), which states that ‘Audited annual accounts of companies ought to be submitted within three months of year end.’

The reads, “The Nigerian Stock Exchange and the investing public need timely financial information from listed companies in other to facilitate stock transactions that are based on market fundamentals.  This is essential for fair price discovery and investor confidence in our capital markets.