The Nigerian Stock Exchange (NSE) on Tuesday said that Lafarge Cement Wapco stock has joined the league of the high-priced stocks.
The Exchange, in a statement, said that the move was aimed at improving market liquidity.
It said that the admission followed its review of the prices of stocks, as part of its plans to improve liquidity and deepen the market.
Mr Ade Ewuosho, the NSE’s Head, Market Operations, said that high priced stocks were securities that have traded on an average of N100 or more per share in the last six months period.
The exchange in September 2012, introduced a pilot programme for its new market structure with the roll out of market making, where stockbrokers could move prices of some high priced stocks with 10,000 shares.
Abimbola Babalola, the NSE’s Head, Market Surveillance, said that review of trading activities of Lafarge in the last six months showed that it met the criteria.
Babalola said that the exchange commenced the pilot programme with nine stocks namely, Dangote Cement, Guinness, Nestle, Nigerian Breweries, SIM Capital Fund, Skye Shelter Fund, Nigerian Energy Sector Fund and Total.
He said that the programme became permanent in 2013 and the nine initial pilot stocks remained, with Lafarge emerging as its 10th stock.
“We have observed that the prices of these high priced stocks have been rather stable, with none falling below the N100 mark which is currently the benchmark,” Babalola said.
He said that stockbrokers would move the prices of Lafarge, in addition to the existing high priced stocks, with 10,000 units with effect from April 22, 2014.