SEC probes AP, Big Treat, Afroil, others over alleged sharp practices
February 15th, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
By Tunde Brown
The Securities and Exchange Commission (SEC) has commenced inquiry into the activities of six companies over allegations of price manipulation and other sharp practices aimed at ripping-off investors. Other companies affected are, First Aluminum Plc, Capital Oil Plc and IPWA Plc. AP emerged the most highly priced stock on the Nigerian Stock Exchange a month ago (January 14th 2008), though there are other factors causing speculations that had contributed to AP’s share price trend.
Big Treat Plc, a confectionery company listed by way of introduction to the floor of the exchange at N2.85 per share, forth quarter last year, has since appreciated by 496 per cent, closing at N16.99 on Thursday. Worthy of note however, is the fact that the price had sky rocketed to as high as N20.85 this week. In like manner, First Aluminum Plc share price gained about 485 per cent.
Afroil which was priced at 42 kobo exactly a year ago, closed yesterday at N27.46 representing 6,438 per cent movement which reports have described as unprecedented in the history of the exchange. Capital Oil and Gas plc stood at 50 kobo per share, June 2007, appreciated by 3,400 per cent, closing N17.50 on Thursday. SEC vowed to deal decisively with any operator found culpable of price manipulation or insider dealing. It reminded all operators that insider dealing was a criminal offence in the capital market and urged them to always operate within the confines of the rules to ensure transparency and integrity of the market.
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I really enjoyed your write up; I have 250,000 Naira worth of shares in Afroil. Do I have any chance of getting my money back?
I’m glad the post has informed you. However, you’d observe that this development was very early this year (Feb), and ‘a lot water has passed under the bridge’.
The Authorities have since placed Afroil on full suspension, a development which has lasted for some 3 months now. But I am sure the regulators are mindful of cases like yours, and would consider it in taking further actions.
Yes, there are chances of getting your money back,but the suspension has to be lifted for trading to commence on the stock.