By Goddy Egene, 08.05.2010

The stock market witnessed a rebound yesterday as strong indications emerged that the efforts by the Senate Committee on Capital Markets to reconcile feuding business mogul, Alhaji Aliko Dangote and Director-General of Nigerian Stock Exchange (NSE) Prof. Ndi Okereke-Onyiuke are yielding fruits.

Unlike the previous two days when the market lost N104 billion partly to the crisis, more equities closed in the bulls’ territory yesterday – leading to  a gain of N66 billion or 1.08 per cent in the  capitalisation of equities.

 

The market capitalisation rose from N6.217 trillion to close at N6.283 trillion, while the NSE All-Share Index  grew from 25,418.84 to close  higher at 25,691.30.

Market operators said the intervention of the Senate Committee gave hope to investors that the matter would be resolved. The duo has been locked in face-off over allegations of fraud at the NSE.

 

Investors intensified the dumping of shares last Monday and Tuesday when it was obvious that Dangote and Okereke-Onyiuke were not ready to sheathe their swords.

These developments necessitated Chairman, Senate Committee on Capital Markets, Senator Ganiyu Solomon, to visit the NSE last Tuesday. He explained that the visit was to ascertain the true position with regards to the various allegations and counter allegations concerning the financial health of the Exchange.

 

“My visit is for the purpose of mediating on the crisis so as to ensure that the growth recorded after the years of financial crisis  is not eroded again. Whatever has come out of the crisis, I believe we should come in and mediate in the interest of the masses. Everybody should do his or her bit to ensure that the investors’ confidence is not eroded again,” he said.
Market sources said that after talking to the duo separately, they agreed to stop the press war preparatory to holding a truce meeting where it is hoped that their differences would be resolved.

 

“If the legislators can resolve the differences between the duo, it will be a very positive development because  the face-off  was already sending wrong signals to investors about the market,” a stockbroker said.

Meanwhile, 36 stocks appreciated yesterday compared with 19 the previous day. Nigerian Breweries Plc led the price gainers with N3.60 to close at N75 per share. UAC of Nigeria Plc trailed with a gain of N1.45 to close at N43.44 per share.

 

PZ Cussons Nigeria Plc, Oando Plc, Benue Cement Company Plc, Zenith Bank Plc and Access Bank Plc chalked up N1.30, N1.14, N0.50 and N0.45 respectively.
Conversely, Mobil Oil Nigeria Plc led the price losers with N8.65 to close at N164.35 per share. Cadbury Nigeria Plc and Cement Company of Northern Nigeria Plc trailed with a loss of N0.43 apiece among others.

Investors traded 243.713 million shares worth N2.109 billion exchanged in 6,324 deals yesterday as against 266.228 million shares valued at N1.933 billion  exchanged in 6,804 deals the previous day.

 

Source: Thisday