The exchange explained in a release on Tuesday that it did the reclassification in furtherance to Rule 15.29: Pricing Methodology, Rule book of The Exchange, 2015.
“For upward or downward movements in price to occur on any Low Priced Stock that is priced at below N5 and listed on The NSE, stockbrokers are required to trade a minimum volume of 100,000 units of shares or above. These Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period,” it stated.
ETranzact dropped below the N5 mark on February 15, 2018 and traded below N5 up till close of business on August 31, 2018.
The NSE had to lower the company’s classification having traded below N5 over the last 6 months and will be reclassified from Medium Priced Stock to low priced stock effective September 12, 2018.