Oando controversy rocks NSE

The Nigerian equities market found itself at the center of controversy recently following the trading of Oando shares. The Nigerian Stock Exchange (NSE) had initially lifted the technical suspension on Oando, only to reverse its decision after receiving further communication from the Securities and Exchange Commission (SEC). Despite this setback, the all share index managed to gain 0.86 per cent, reflecting a degree of resilience in the market. According to a statement from the NSE, following consultations with the SEC, trading on Oando shares is expected to resume without any impediment in price movement. Esili Eigbe, Director and Head of Equities Nigeria at Exotix, shared insights on the situation during an interview with CNBC Africa. Discussing the suspension, Eigbe acknowledged that there had been a misunderstanding between the NSC and the SEC, but emphasized that such suspensions may not always be necessary for investigations to proceed. He stressed the importance of transparency and ensuring that investors are informed about ongoing events or audits, enabling them to make informed trading decisions. The fluctuating developments surrounding Oando shares have raised concerns among investors and market participants. However, the NSE's decision to allow trading to resume signals a step towards restoring stability and normalcy in the market. The positive performance of the all share index in the midst of this controversy suggests that investors may be cautiously optimistic about the overall outlook of the market. While the situation may have caused some confusion initially, the collaborative efforts between the NSE and the SEC are aimed at ultimately facilitating a smooth trading process. The focus now lies on ensuring that market participants are adequately informed and that trading activities proceed unhindered. As stakeholders closely monitor the developments in the coming days, the impact of this incident on investor sentiments and market dynamics remains to be seen.