INVESTORS at the Nigerian stock market made a frantic move all through last week to take position in the seven rescued banks, following the enactment of the Asset Management Corporation of Nigeria (Amcon) Act.
The result is that the share price of the bailed-out banks began moving up last week Tuesday. Businessworld gathered that the shares of the banks became scarce at the stock market, as investors were bidding more for them in an effort to take advantage of their low prices.
The bailed-out banks, namely Intercontinental Bank Plc, Oceanic Bank International Plc, Union Bank of Nigeria Plc, FinBank Plc, Afribank Nigeria Plc, Spring Bank Plc and Bank PHB Plc - recorded significant appreciation in their share prices. A stock broker who spoke to Businessworld noted that there are buy pressures on the bailed-out banks much more than the banks cleared by the regulators. According to him, “I wanted to buy the shares of some of these banks but I couldn’t get to buy, and this is because these banks have moved ahead and returned to profitability.”
Of the bailed-out banks, Afribank recorded the highest appreciation as its share price rose by 26 per cent to N2.17 from N1.72 which it began the week trading with. Oceanic Bank recorded a 19.6 per cent price appreciation to sell at N1.95 as against N1.63 which it opened trading, while Intercontinental Bank’s share sold higher at N2.05 with a 13.8 per cent appreciation. Bank PHB and Union Bank made 13 and 12.8 per cents appreciation to sell at N1.59 and N5.64, respectively. The share price of Finbank also rose by 12 per cent as the bank closed the week selling at N0.56 from N0.50 which it began the week trading with.