The Nigerian Exchange Limited (NGX) has reclassified Champion Breweries Plc from the Low-Priced Stock Group to the Medium-Priced Stock Group, following a review of its share price performance over the past six months.
The NGX sorts listed companies into three stock price categories based on their market prices:
1. High-Priced Stocks → ₦100 and above
2. Medium-Priced Stocks → ₦5 to ₦99.90
3. Low-Priced Stocks → below ₦5
To stay in any group, a company’s stock must trade within that price band for at least four out of the most recent six months.
Champion Breweries’ share price has consistently traded above ₦5 for most of the past six months. This performance qualifies it to move up from the Low-Priced to the Medium-Priced group.
This signals a notable shift in investor perception, as Champion is no longer considered a “penny stock” on the Exchange.
The reclassification also affects the tick size (minimum price movement allowed):
• Low-Priced Stocks: ₦0.01 increments
• Medium-Priced Stocks: ₦0.05 increments
Going forward, Champion’s share price will move in ₦0.05 steps instead of ₦0.01, which can influence liquidity and trading strategies.
Improved Status: Moving to the Medium category elevates Champion’s market profile and signals growth momentum.
The larger tick size (₦0.05) could mean slightly less “micro-movement” in daily trading, but it also reflects stronger price stability.
Being reclassified upward may attract more institutional and retail interest, as it shows consistent upward trading.
Champion Breweries’ upgrade from Low-Priced to Medium-Priced stock group highlights its sustained growth above ₦5. With the new ₦0.05 tick size, it is no longer considered a penny stock, signaling stronger investor confidence and market positioning.