By Gbenga Agbana

Wednesday, 10 Nov 2010

The performance indices of the Nigerian Stock Exchange rose marginally on Tuesday, following plans by the Asset Management Corporation of Nigeria to buy off over N2.2tn toxic assets.

At the close of trading, the All-share Index of the NSE rose from 24,728.08 points on Monday, to close at 25,383.37, while the market capitalisation rose by N110bn, from N7.89tn, to close at N8.11tn.

Forty-three companies recorded price gains on Tuesday, while 20 others recorded losses. The gainers’ chart was led by Dangote Cement Plc, gaining 641 kobo to close at N134.66 per share while Mobil Oil Nigeria Plc and Ashaka Cement Plc gained 638 kobo and 110 kobo to close at N152.90 and N23.60, respectively.

Northern Nigeria Flour Mills Plc led the price losers, down by 202 kobo to close at N38.41 per share, while Flour Mills of Nigeria Plc and Oando Plc lost 101 kobo and 100 kobo, respectively.

Analysts attributed the increase in the indices of the NSE to the pronouncement by the management of AMCON on Monday, saying that the toxic assets of banks would be purchased by the corporation.

According to them, when implemented, banks will have enough capacity to lend more and the value of the stocks at the stock market will be enhanced.

The volume of the stocks traded also increased, as 524.8 million shares valued at N3.98bn changed hands in 7,340 deals, up from the 414.6 million shares worth N2.16bn exchanged on Monday.

The banking subsector remained the most active, with 411.1 million shares valued at N2.77bn.

This was followed by the insurance sub-sector, where 62.3 million shares, valued at N48.7m changed hands.

Further analysis of transactions in the banking subsector indicated that the shares of Oceanic Bank International Plc was the most active, with 72.2 million units worth N213.75m, followed by Guaranty Trust Bank Plc, which traded 50.2 million shares worth N815.6m.

Source: Punch