NSE to suspend stockbrokers over shares manipulation

Friday Ekeoba, Lagos - 31.03.2008

FOLLOWING the suspension by the Securities and Exchange Commission (SEC) in the trading in the shares of Afroil Plc and Capital Oil Plc, a number of operators (stockbrokers) will this week be suspended by the Nigerian Stock Exchange (NSE) following their alleged complicity in market infraction.

Market infraction are fraudulent activities perpetrated by operators in the market to drive up prices of shares in order to deceive the investing public into believing that the company is healthy or has strong fundamentals to be invested in.

Speaking on some of the challenges in the market at the weekend, the NSE Director General, Dr. Ndi Okereke-Onyuike, said owing to some activities of some operators in the market, the NSE would, after its council meeting this week, announce those stockbrokers investors should not transact business with.

“People’s lives are in this market, people’s confidence is in this market, we do not make announcement for the sake of announcement, and we do this after concluding investigation,” she said.

The SEC had ordered the immediate suspension of trading in shares of Afroil Plc and Capital Oil Plc on the floors of the Nigerian Stock Exchange (NSE) about a week ago with a view to protecting the investing public.