Nigerian Stock Exchange Denies Knowledge of Price Fixing.
February 15th, 2008 Ugonna Maduagufor || ugonna@stockmarketnigeria.com
(by ugonna MADUAGUFOR)
The Nigerian Stock Exchange has this morning February 15th 2008, countered the yesterdays statement attributed to Mr. Lanre Oloyi of the capital market regulators “Securities and Exchange Commission”, that the commission will commence investigation on allegations of “price fixing” and “insider trading” activities in favour of five listed companies in the Nigerian Stock Exchange. The SEC’s spokesman said that the investigation move is in a bid to protect investors in the national (Nigerian) capital market.
On the other hand, the research and information manager of the Nigerian Stock Exchange, Mr. Kenny Okafor this morning at the trading floor of the exchange made it clear in the presence of stockbrokers, media and others that present that the Nigerian Stock Exchange has neither faulted nor discovered any price fixing scandal by any stakeholder in the secondary capital market.
The suspected company’s includes: African Petroleum plc, Big treat plc, First Alluminium plc, Capital oil plc, and IPWA plc.
The stocks of the named companies had experienced an enormous upward surge in terms of capital appreciation with the shares of African Petroleum making an over 300 percent increase in price from 2007 to date.
‘Insider dealing” refers to the usage of a company’s secret information possessed by a director, staff or privileged individuals to transact on such companies stock profitably at the expense of the uninformed public. While, “price fixing” is the deliberate manipulation of company share price in any form safe for the free market forces of demand and supply. The Securities and Exchange Commission has recently been taking several crucial steps towards creating a healthy and information efficient environment for the transaction of capital market activities in the country, thereby improving the investors’ confidence in the market.
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