The stock market before the two-day public to mark the
Christmas celebration in its Year-till-Date performance stood at 4.95 per cent.
However, out of the seven delisted companies, the management
of the Exchange forcefully delisted four, while three voluntary delisted
Capital market analysts, to management decision to delist and failure to comply with the post-listing requirement. The likes of Evans Medical Plc, Nigeria-German Chemicals Plc, Roads Nigeria Plc, and Unic Diversified Holdings Plc were forcefully delisted from the market for not complying with post-listing requirement of promptly filing of results.
Studio Press Nigeria Plc, Union Diagnostic and Clinical
Services Plc, and 11 Plc voluntary delisted from the Exchange in 2021.
The Vice President, Highcap Securities, Mr. David Adnori
said: “The stock exchange requires companies trading their stocks on its platform
to regularly file their financial statements to enable shareholders and the
investing public to have information that would enable them to make investment
decisions.
“When companies fail to submit their books for scrutiny, the
exchange uses its big hammer, which usually comes in a form of sanction and
when it becomes consistent, the firms are shown the way out.”
The National Co-ordinator, Independent Shareholders
Association of Nigeria, Dr. Anthony Omojola said shareholders are concerned
that more companies delisted from the bourse than new listings.
According to him: “I predicted that more companies are going
to delist from the NGX this year because the regulators are not flexible in
policies as regards sanctions, among others. The business environment is not
friendly to allow these companies to expand and make profit.”
Analyst at PAC Holdings, Mr. Wole Adeyeye said the poor
earnings due to weak corporate governance and economy factors impacted on these
companies late filing of results at the stipulated time.
“Most of these companies were reporting losses and delisting
them was the best thing. We have seen situations where the company cannot meet
NGX listing requirements and moved to NASD Exchange.
“On the NASD Exchange, I think companies are meant to
publish only the annual report but on the NGX, companies are meant to be
updating quarterly results which to some it might be a very tasking demand.
“Some companies do delist due to regulatory decisions,
management decisions to change the vision and maybe had an aspiration to go
private.”
In the year under, Ronchess Global Resources Plc, Briclinks
Africa plc, and Nigerian Exchange Group Plc were all listed by introduction,
Adeyeye noted that: “We should be having more than three
listings in a year on the NGX. The three listings is a welcome development but
we can do better to attract more listings.”
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