NSE INDEX - Market Rebounds as FG Appoints AMCON Board

Wednesday 01 September 2010
- Culled from The PunchThe bulls resurfaced at the equity sector of the Nigerian Stock Exchange on Tuesday, following the Federal Governments appointment of the board of the Asset Management Corporation of Nigeria on Monday.According to analysts, who spoke with our correspondent in a telephone interview, the positivity can be linked to the appointment of the board of the AMCON. They, however, said that it was too early to say if it would be sustained.A stockbroker, who craved anonymity, said, ”The positive trend cannot be said to be spontaneous. We can link it to the appointment of the AMCON on Monday by the Federal Government. However, it is too early to conclude if it will be sustained.” The rise in market indices was partly driven by price gains in the shares of some rescued banks, as Spring Bank Plc, Intercontinental Bank Plc, Union Bank of Nigeria Plc and Wema Bank Plc all gained above four per cent.Meanwhile, the Nigerian Stock Exchange‘s All Share Index rose by 0.19 per cent or 47.11 points to close at 24,268.24 points, compared to the 24,221.13 recorded on Monday.The market capitalisation of the listed equities increased by 0.39 per cent or N23bn, from N5.92tn to close at N5.95tn.The NSE-30 Index rose by 0.27 per cent or 2.72 points to close at 1,010.60 points, from 1,007.88 points recorded the previous day. The NSE Banking Index closed at 355.41 points, representing a 0.03 per cent or 0.11 points marginal increase, from 355.30 points.The sub-sector accounted for 45 per cent of total turnover, as investors exchanged a total of 167.59 million banks‘ shares, valued at N1.48bn in 3,945 deals. The shares of First Bank of Nigeria Plc, Guaranty Trust Bank Plc and Diamond Bank Plc drove volume in the sub-sector.CAP Plc recorded the highest gain, rising by five per cent or N1.67 to close at N35.18 per share. UAC of Nigeria Plc followed with an increase of 3.3 per cent or N1.33 to close at N41.98 per share, while Nigeria Bottling Company Plc gained 2.7 per cent or N1.04 to close at N39.60 per share.Guinness Nigeria Plc led the losers‘ chart with a 1.2 per cent loss to close at N165.00 per share, while Okomu Oil Palm Plc lost 4.9 per cent or 69 kobo to close at N13.29 per share. Avon Crowncaps and Containers Plc dropped by five per cent or 38 kobo to close at N7.27 per share.