Shares of Ikeja Hotels Plc led the price gainers at the stock market on Tuesday after the suspension placed on the company by the Nigerian Stock Exchange (NSE) in November 2016 was lifted. The stock appreciated by 9.6 per cent to close higher at N2.04 per share, while investors traded about 34.552 million units.
Trading in the shares of Ikeja Hotels Plc was halted by the NSE following a protracted feud among the majority shareholders of the company in 2016. The dispute led to the removal of Goodie Ibru, its chairman, in 2015 at an extraordinary general meeting (EGM) by some shareholders, while the Securities and Exchange Commission (SEC) appointed a new board to run the affairs of the company.
However, the NSE on Monday lifted the suspension after the company provided a status update to the market. According to the Executive Director, Regulation, NSE, Tinuade Awe, the new board had complied with the necessary regulatory requirements and restored the company to the path of recovery.
“We are satisfied with the work the Ikeja Hotels has done till date this is an appropriate time to lift the suspension on the trading of the shares of the company. The company had its AGM to clear the backlog of certain AGMs. It was this consideration that led the quotation committee of NSE to decide that it is an appropriate time to lift the suspension,” Awe said.
Positive response to this development by investors led to the price gain by the stock to top the 18-gainer price table for the day. Cement Company of Northern Nigeria Plc closed as the second highest price gainer with 5.0 per cent. Okomu Oil Palm Plc followed with 4.9 per cent, just as AIICO Insurance Plc chalked up 4.8 per cent. First Aluminium Nigeria Plc and Law Union & Rock Insurance Plc garnered 4.7 per cent apiece.
However, the bears continued to dominate the market as 34 stocks depreciated led by Eterna Plc with 8.5 per cent. Honeywell Flour Mills Plc and The Initiates Plc trailed with 5.0 per cent each. LASACO Assurance Plc went down by 4.8 per cent, while African Alliance Assurance plc shed 4.7 per cent.
The persistent bear run pushed the NSE All-Share Index further down by 0.43 per cent to close at 40.249.29, while market capitalisation closed lower at N14.58 trillion. Investors traded 281.260 million shares worth N4.092 billion in 4,304 deals.