Take-aways for Investors from the 21 Delisted Stocks by the NSE

Proshare

Monday, 23 June 2014 6.55 PM  / TheAnalyst
 

See Snapshot Analysis Table Below 

De-listing of quoted firms from the daily official list of The Exchange is not a casual decision taken by all parties concerned,with obvious implications for invstors in the company’s stock.
 

The process can either be initiated by the company itself or the regulators.
 

If the delisting is voluntary i.e. initiated by the company, the directors meet and pass resolution(s) to de-list the company. Upon approval, the company is usually expected to make an offer to buy back its shares held by the public
 

In the case of a delisting by the regulator, it must be seen as the ultimate sanction on a quoted entity for persistent non-compliance with the bourse’s post-listing rules.
 

This morning, The Nigerian Stock Exchange made public a June 02, 2014 decision of the Quotations Committee of the National Council of The Exchange wherein it approved the delisting of 21 quoted entities from the Daily Official List pursuant to the provisions of The Exchange Listing Rules.
 

It can therefore be implied that investors in these stocks ‘have’ lost their invested capital unlike in voluntary delisting.
 

A review of the list and supporting data reveals the following:
 

  • 63 firms had been delisted from the Daily Official List of the Exchange between 2002 and April 2013.
  • 16 firms were delisted for failure to file quarterly and annual financial statements (dates not stated though assumed to be for a period outside the grace period);
  •  5 firms were delisted for failure to ‘regularise’ their listing status;
  •  A total of N 75,444,264,006.71 was removed from the NSE total market cap;
  •   Only 5 firms were trading above N1.00;
  • 8 stocks are trading at their nominal value. STARCOMMS, DAARCOMM, IPWA and FTNCOCOA makes this list;
  •  5 firms traded on Friday, June 20, 2014 when the market closed trading for the week;
  • 7 firms out of the list came unto the bourse between 1974 and 1985;
  • 44% of the total Market cap wiped out related to Pinnacle Point Group Plc, a company listed on 17th Mar, 2009; like MTECH with 6% of the Market share wiped out;
  •   IAINSURE with 19% of the Market Cap wiped out has virtually ceased business operations for a long while;
  • Capital Oil Plc and Afroil Plc were perennial defaulters for many years; and
  • Starcomms, Daar Communications, Big Treat and Goldlink Plc reflects the sad legacy of the pre-crash era.
     

 

Dividend and share performance history is available at www.theanalystng.com
 

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