The shares of Oando Plc has recorded a growth of 51 per cent in the five day’s it has traded, since the technical suspension placed on its shares were lifted on Thursday last week.
Oando’s shares traded for the first time on Wednesday, April 11, after six months of technical suspension. The stock was later suspended same day, recorded no movement in price and re-opened for trading next day on Thursday, April 12. This is even as the Johannesburg Stock Exchange on Friday, also lifted a similar suspension earlier placed on the stock.
The Oando shares which opened on the NSE, Thursday at N5.99 gained 91 kobo and closed last week at N6.90 per share. But three trading days into the new week, the stock has retained its second position on the gainers chart consistently and settled at N9.05 on Wednesday, April 18th.
The NSE had placed Oando’s stock on a suspension since October 20, 2017, following the directive from the Securities and Exchange Commission and pending the outcome of a probe on Insider dealings and shareholding structure of the oil firm.
The suspension lift last week has raised eyebrows from some market stakeholders as no outcome of the probe being carried out by an independent audit firm- Deloitte had been announced and more importantly because a statement from the SEC (who according to NSE initially approved the suspension to be lifted) reordered the reversal of the lift and a return to October 20 status quo.
Investors are however unperturbed as shown in the movement of the stock prices.
Confirming the development researchers at proshare noted that investors of Oando Plc have so far gained N36.83bn with a total 743,106 volumes of shares traded on Wednesday.
Story by Afolabi Adesola
Frontpage September 12, 2019