Nigerian Stock Exchange upgrades Ecobank to medium stocks

Nigerian Stock Exchange upgrades Ecobank to medium stocks – The Nigerian Stock Exchange (NSE) has upgraded and reclassified the trio of Ecobank Transnational Incorporated (ETI) Plc, Northern Nigeria Flour Mills (NNFM) Plc and International Breweries Plc from low-priced stocks to medium-priced stocks.

The NSE classifies quoted companies into three categories – high-priced, medium-priced and low-priced stocks – based on their market price. A company must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.

According to the Exchange, the upgrade and reclassification, which took effect from Monday March 8, 2021, was based on the review of the share prices of the stocks in recent months.

The NSE noted that the review of International Breweries, ETI and NNFM stock prices trade over the period provided the basis for reclassifying the securities from the low priced stock group to the medium priced stock group.

With the reclassification, there would be change in the tick size change from  one kobo to five kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of the Exchange, 2015.

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“International Breweries Plc, Ecobank Transnational Incorporated and Northern Nigeria Flourmills Plc stock price appreciated above the N5 price level on October 16, 2020, October 27, 2020 and October 30, 2020 respectively and traded above N5 up till close of business on  February 18, 2021, and March 1, 2021 respectively. This indicates that International Breweries Plc, Ecobank Transnational Incorporated and Northern Nigeria Flourmills Plc stock prices have traded above N5 in the last six months,” NSE stated.

The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.