Still on Oando, SEC & NSE has made a decision that’s best for the image of the country

Still on Oando, SEC & NSE has made a decision that’s best for the image of the country

I have always held the opinion that the technical suspension on Oando’s shares was uncalled for.  Nothing illustrates this as clearly as what happened immediately the ban on its shares was lifted. As SEC / NSE lifted the technical suspension on Oando shares, indices from the the first day of trading reveal the company’s shares have remained popular among stakeholders even while it wasn’t trading on the floor.

Since the removal of the technical ban, Oando’s share price has risen to N7.55 on 16 April, 2018 from N5.99 on Thursday 12 April, 2018.

It is hard to justify how the regulators could decide to intentionally deprive many shareholders of value. This type of move, if continued - in whatever shape or form -  will affect investor and market confidence levels, reducing the possibility of more investment into the country’s economy.

The suspension of Oando’s shares did little in the international domains to encourage FDI and this single move by NSE / SEC could be the best indicator of the country’s resolve to begin to head in a better direction.

You’ll also recall that Oando PLC’s stock was a major contributor to the NSE 30 Index’s performance in the first three quarters of the year 2017, prior to the suspension. The company has been identified as a proven winner in the local and global market. It’s no surprise that Oando shares have inspired this enthusiastic uptake.

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