Analysts Back Suspension of Nine Companies’ Shares on NGX
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Kayode Tokede
Capital market analysts have expressed satisfaction over Nigerian Exchange Limited (NGX) management’s decision to suspend trading on nine companies’ shares on the bourse.
The Exchange had announced the suspension of trading in shares of African Alliance Insurance Plc, Niger Insurance Plc, Royal Exchange Plc, Ekocorp Plc, C&I Leasing Plc, Mutual Benefits Assurance Plc, Coronation Insurance Plc, Premier Paints Plc and Ardova Plc for not submitting their audited financial statements for the year ended December 31, 2021.
In a swift response, the Company Secretary, Ardova, Oladeinde Nelson-Cole in a signed statement stated that, its board and Management of Ardova allay concerns over the recent suspension of trading of the company’s securities on the NGX.
According to him, “The delay in submission was primarily due to the accounting reconciliations that followed the acquisition of Enyo Retail and Supply Limited (ERSL), a transaction which was concluded in November 2021. Enyo’s accounting has now been harmonized with the IFRS accounting standard already in place at Ardova, following which the group’s Consolidated Financial Statements were completed and duly audited.
“These audited financial statements were approved by Ardova’s Board of Directors following its meeting on 29 June, 2022, and will be filed with the NGX on or before 8 July, 2022. In accordance with NGX rules, we expect that the suspension of trading will be lifted upon submission.”
He added that, “the Board and Management apologize for inconvenience caused by this administrative circumstance and reassure our stakeholders that Ardova remains committed to the highest standards of compliance and corporate governance.”
Speaking with THISDAY, Professor of Capital Market at Nasarawa State University, Uche Uwaleke said the suspension move by the management Exchange has continued to strengthen listed companies’ corporate governance and timely filing of results.
According to him, “The suspension over the years has continued to bring sanity to the capital market and we have seen companies responding with timely disclosure of result and accounts.
“If the Exchange had not been effective with its suspension policy, most of the listed companies will be found wanting and it is not good for our domestic capital market.
“I think the suspension of listed companies is a regulatory tool the management of The Exchange should continue to use, especially now that it has been demutualized.”
The CEO, Wyoming Capital & Partners, Mr. Tajudeen Olayinka noted that suspension placed on a company simply put shareholders’ pressure on the management of the company
“Is either by way of pricing down the share price of the company, or outright protest against the management. Somehow, the management will respond if they have nothing to hide,” Olayinka added.
