Shares of Dangote Flour, 23 others on full suspension

The Nigerian Stock Exchange (NSE), on Tuesday, placed the shares of 24 companies on a “full suspension” while nine others were placed on “technical suspension.” The affected companies, which include Dangote Flour Mills, Ikeja Hotel, and 22 others, were placed on full suspension for failure to submit their financial statements for the year ended December 31, 2010. The nine companies on technical suspension were sanctioned for failure to submit their financial statements for the first quarter ended March 31, 2011.

Placing a quoted company on full suspension means there will be no transaction on its share until the suspension is lifted, while a stock on technical suspension implies that there will be trading but no price movement on its share.

The NSE had last month said non rendition of financial accounts to the market is a violation of the Exchange’s rules. “This is in violation of the Post-Listing Rules of The Exchange as contained in Key Issue No. 5 (Annual Accounts Procedures), which states that audited annual accounts of companies ought to be submitted within three months of year end.” The Exchange also said that the capital market and the investing public need timely financial information from listed companies in order to facilitate stock transactions that are based on market fundamentals. “This is essential for fair price discovery and investor confidence in our capital markets,” it said.

Some of the other companies on full suspension are: African Alliance Insurance, IPWA, Premier Paints, Omatek Ventures, Daar Communications, MTI, Nigerian Wire & Cable Industry, P.S.

Mandrides & Company, and Lennards.

Other companies on technical suspension include: Costain West Africa, Premier Breweries, Hallmark Paper, G & Cappa, and Union Homes Savings & Loans.