The Nigerian Exchange (NGX) has introduced a revised pricing framework that will require specific volumes of shares to be traded before the market price of a stock can change.
Details contained in the Exchange’s updated Rulebook indicate that equities will now be grouped into three categories based on their share prices, with each category assigned a minimum trading quantity needed to trigger a price adjustment.
Confirming the changes via its new Rulebook, the NGX stated: “Price Movements: the minimum quantity of equities traded that will change the published price of an equity security shall be as follows: (A) Group A: Ten Thousand (10,000) units. (B) Group B: Fifty Thousand (50,000) units. (C) Group C: One Hundred Thousand (100,000) units.”
Under the new rules, stocks trading at N1,000 and above will require a minimum of 10,000 shares to be traded before a price movement can occur.
Stocks trading at N500 and below N1,000 will require a minimum of 50,000 shares to trigger a price change. Stocks trading at below N500 will require a minimum of 100,000 shares to move the market price.
