Another 19 still in limbo
By Nkiruka Nnorom
A TOTAL of 19 quoted companies may now be under threat of hostile take-over in the Nigerian Stock Exchange, NSE, following the crashing of their stock prices below par value in the last two weeks. The stocks were exposed to low valuation when NSE removed the decades-old par value price floor of 50 kobo below which stock prices could not go down.
Subsequently, prices of these companies began dropping below the 50 kobo with Consolidated Hallmark Insurance Plc leading the pack recording the lowest share price of 27 kobo in the market at close of trading last weekend.
Other insurance stocks which have been stuck in the 50kobo base line under the old policy, seem to be more vulnerable with more companies in the sector registering price decline since the commencement of the rule on January 29, 2018. Of the 19…
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