Reps to probe stagnation of prices, earnings on Nigerian Stock Exchange

The House of Representatives on Wednesday resolved to investigate why the prices, earnings and profitability profiles of some quoted stocks on the Nigerian Stock Exchange (NSE) has remained in one position for about three years.

The investigative committees are capital market and institutions, insurance and actuarial matters.

This investigation shall also review and confirm the pricing basis of the recent acquisitions of publicly quoted Nigerian insurance companies.

These resolutions came on the heels of the adopted motion sponsored by Hon. Femi Fakeye.

Fakeye, in his lead debate, affirmed that investors were expected to share accruing profits through declared dividends and appreciation in the their companies stock periodically.

The lawmaker pointed out that despite many reports on the positive performance of some companies quoted on the NSE about their earnings and profitability profiles, their prices have remained pegged in one position.

He further disclosed that nearly all the twenty-six insurance companies quoted on the stock exchange have had their stock prices trading at 50 kobo par value for many years.

Fakeye further expressed worry that if the situation continues unchecked, it will have the tendency to discourage the investing public and stifle the growth of the stock market.

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