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SEC to take action against price hike

by Business News Report

The recent hike at the Nigerian Stock Exchange, is still generating furors in official quarters.
The Securities and Exchange Commission, the apex regulatory institution for the capital market views with serious concern the increase of quoted price of shares at the stock exchange.
SEC in its quarterly magazine gives expression to its thought over the issue. Since the price hike of June 24, his is the first public pronouncement SEC is making on the subject matter of price hike.
According to SEC, necessary action is being taken to prevent a reoccurrence.
The question being asked now by those who follow close development at the Stock Exchange is how come about the price hike?

Nobody seem to be ready to talk on the issue. At the Stock Exchange it is all sealed lips. Everybody seem to be suspicion of the other. Any stance face is regarded as trespasser.
Reliable but unofficial sources said that the Stock Exchange has received an official query from SEC to explain the unusual increase in prices of shares. Apparently, not satisfied with NSEC answer, The Republic leant that SEC wrote a formal complaint to the federal ministry of finance reporting the stock exchange on the price hike.
The Republic also gathered that the stock exchange management is at war with its staff, culminating in what officials call reorganisation but what staffer see as vendetta over the coming together as a union. It is being said at the stock exchange that five staffers have lost their job over he ranging controversy.
According to the Security and Exchange Commission, the phenomenon of arbitrary price hike is unhealthy for capital market development in Nigeria. SEC further said that th situation is capable of eroding investors’ confidence in the Nigerian capital market.
According to SEC, activities of the stock market usually reflect the general state of economic performance of any situation. Since there has been no dramatic change either in the economy or the economic fortunes of the affected companies, there is no justification for the price hike.

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