March 27, 2008
The shares of AFROIL and CAPOIL were today placed on full Suspension with regard to the directive of the Securities & Exchange Commission (SEC) late last week.
You will recall that subsequent to the order, last week by SEC, the NSE seeming appeared to disagree on the suspension placed on the two stocks following the result of an investigation by SEC into their performance and the movement in their share prices.
After the announcement of the suspension last week, there was trading on the two stocks and when the market reopened on Tuesday as stockbrokers continued to trade on the stocks.
For instance, 1.233 million units of Afroil Plc valued at N28.3 million changed hands on tuesday in 157 deals, while Capital Oil Plc sold 2.1 million shares worth N31.44 million in 86 deals.
It is our hope that further investigations into the facts surrounding these companies is conducted and made public.
One question though that remains unanswered is that what happens to investors in one of the companies now found to have been wound up long ago, without financial returns and was left on the list (with denials as to allegations that the company was no longer in operations).
This is one question the SEC and NSE must close ranks to explain to help reStore confidence in the market and the regulators ability to provide safety nets for investors.