The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Zichis Agro-Allied Industries Plc following an extraordinary surge in the company’s stock price.
In a market bulletin circulated to dealing members on Monday, the exchange announced that the suspension will take effect from February 23 and remain in force pending the conclusion of a regulatory review. The decision comes after Zichis Agro-Allied’s share price rose sharply by 772 percent within a month. The stock closed at N17.36 on Friday, February 20, up from its listing price of N1.81 on January 20.
NGX described the movement as “extraordinary price movements” and said the suspension is necessary to allow regulators examine the factors behind the rapid appreciation. The halt effectively prevents further transactions in the company’s shares while investigations are ongoing.
In a separate investor advisory, the exchange disclosed that it has noticed unusual price swings in certain listed equities in recent trading sessions. It urged market participants to make investment decisions based on verified public information and sound analysis of companies’ fundamentals.
“NGX confirms that it will continue to monitor trading activity to ensure market integrity and compliance with the Exchange’s Rules,” the notice read.
The exchange also cautioned investors against speculative trading driven by rumours or unverified information. It encouraged shareholders to conduct proper due diligence and seek guidance from licensed stockbrokers or investment advisers where necessary. Reaffirming its commitment to maintaining a transparent and orderly market, NGX said it will continue to enforce compliance with its listing and trading rules.
Meanwhile, Zichis Agro-Allied Industries Plc issued its own cautionary statement addressing the sharp increase in both share price and trading volume.
The company said that, to the best of its knowledge, there is no undisclosed material information or corporate action that could explain the recent rally.
“The Company remains committed to complying with its continuous disclosure obligations under the applicable Listing Rules and will promptly notify The Exchange and the investing public of any material information requiring disclosure,” the statement reads.
Zichis also advised shareholders and prospective investors to exercise caution while trading in its shares until further clarification is provided.
