NGX suspends trading in Zichis Agro shares, launches probe after 772% price surge

By Abubakar Yunusa

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Zichis Agro-Allied Industries Plc pending the outcome of a regulatory investigation into recent trading activities.
In a market bulletin issued to dealing members on Monday, the exchange said the suspension takes effect from February 23, and will remain in place until the review is concluded.
The move follows what the NGX described as “extraordinary price movements” in the company’s stock.
Zichis Agro-Allied’s share price climbed by 772 percent to close at N17.36 on Friday, February 20, from its listing price of N1.81 on January 20.
The exchange said the suspension effectively halts further transactions in the stock while regulators examine the circumstances surrounding the rapid appreciation.
In a separate investor alert, the NGX said it had observed significant price movements in the shares of some listed companies in recent trading sessions.
The bourse urged investors to base investment decisions on publicly available information and a careful assessment of companies’ fundamentals, risk profile and financial performance.
“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 advised investors to exercise due diligence before making investment decisions, avoid speculative trading based on rumours or unverified information, and consult licensed stockbrokers or investment advisers where necessary.
NGX reiterated its commitment to maintaining a fair, orderly and transparent market.
Also, Zichis Agro-Allied Industries Plc issued a cautionary statement to shareholders and the investing public, acknowledging the recent surge in the price and trading volume of its shares.
The company said that, to the best of its knowledge, there is no material information or corporate development that has not been disclosed to the market.
“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 Agro-Allied Industries advised shareholders and potential investors to exercise caution when dealing in its shares pending further clarification.