BANKING stocks have continued to dominate activities in the equities market following the recent signing into law of the Asset Management Corporation of Nigeria (AMCON) Bill by President Goodluck Jonathan. AMCON is expected to soak up the bad debts estimated at N2.2 trillion in the nation’s banking sector.

The renewed confidence in the banking stocks which were hitherto rejected by investors saw both local and foreign investors taking positions through their proxies in anticipation that the corporation will turnaround the fortunes of the financial industry.

Effective July 20, when the President okayed the AMCON Bill, rallying in transaction of stocks in terms of capital appreciation in the market especially in the banking stocks has been on the upbeat just as the parameters that measures, value indicators has been going southward.

The AMCON as introduced by the Central Bank of Nigeria (CBN) in concert with other regulatory agencies in the financial sector is aimed at soaking the bad debts incurred by banks in the country.

Most of the listed bad debts were incurred in form of margin facilities to stockbrokers, investment in both the down and offshore oil business as well as insider related abuses by directors of the respective banks.

The implication of the new wave of investment in the securities market is that apart from the fact that the Corporation will assist in stimulating transactions, sustaining it will help the market bounce back sooner than expected.

Meanwhile, at the close of transaction on Friday transactions, cumulative transaction in the banking sector was the most active during the week, measured by turnover volume of 1.1 billion shares worth N9 billion exchanged by investors in 19,170 deals.

A review of transaction last week showed that Nestle Nigeria Plc led the gainers chart with N8.00.

Guinness Nigeria, Nigerian Breweries, Nigerian Bottling Plc and Benue Cement Company Plc followed closely with N7.00, N4.24, N3.32 and N2.45 respectively, while Mobil Nigeria, African Petroleum, Julius Berger plc, Conoil Plc and the Okomu Oil Palm Plc led the pack of the five top most stocks which depreciated. They fell by N7.94, N5.82, N2.74, N2.47 and N1.06.

A turnover of 2.11 billion shares worth N17.7 billion in 33,067 deals was recorded last week, in contrast to a total of 2 billion shares valued N14.1 billion exchanged the previous week in 30,906 deals.

While the market is gradually on the part of a rebound, another time bomb that appears to be staring investors, operators and other stakeholders in the face is the litigation crisis, which is seeking to invalidate the appointment of Alhaji Aliko Dangote as the President of Council of the Nigeria Stock Exchange (NSE).

Penultimate week, a Federal High Court sitting in Lagos issued a bench warrant against Dangote, the Director General, Prof. Ndi Okereke-Onyuike and Secretary to the NSE, Ms Igbinosun following their failure to appear before it to answer charges of flagrant abuse of court order.

The court presided over by Justice James Tsoho has since lifted the arrest order on Okereke-Onyiuke and Igbinosun while that of Dangote is still hanging.

It would be recalled that some aggrieved shareholders of African Petroleum Plc had approached the court and obtained an order to stop the alleged election of Dangote to the council of NSE on June 6 last year. However, the council of the NSE after their Annual General Meeting on that day, went ahead to appoint Dangote by acclamation as against election expected by shareholders.

Acclamation means a public and enthusiastic display of approval or a vote in which no formal ballot is held but the voters make views clear by shouts or applause.

The total market capitalisation of all listed securities crossed to N6.212 trillion Monday on aggressive trading by investors and stock traders. The NSE composite index added 1.02 per cent on the first trading day of the week at 25,570.17 as bellwether banks and the rescued institutions added more to their last week advances.

In line with forecast by analysts, the final trading week in July is coasting home to another positive closing on the back of positive policy news and corporate earnings. In the day, the market received about six corporate earnings. Leading the advances were Zenith, ETI, Access, Diamond, Stanbic IBTC, Union Bank, Fidelity Bank, Ecobank Nigeria, Intercontinental, Wema, Oceanic, Afribank and Finbank.

Industrials fell back on the trading board with the exception of Dangote Sugar that added 40kobo and Vitafoam better by 28kobo. Construction giant, Julius Berger fell by 275kobo, UACN and PZ Cussons also declined alongside AshakaCement.

The Banking index added the most, up by 2.19 per cent; Insurance made a surprising upside of 0.16 per cent, the Food index added 0.50 per cent while oil and gas index declined 0.64 per cent. The NSE Top 30 index was better by 0.89 per cent. UBA led the volume drivers in the banking sector with 51 million shares; investors traded 29.6mn shares of Zenith and 28.09mn shares of Bank PHB. Total shares traded Monday amounted to 366.3mn shares worth N3.56bn in 6,000 deals.

Investors’ wealth on the NSE for seven days on Tuesday rose by N264 billion as a result of the AMCON Act. In particular, the market capitalization rose by N264 billion or 4.1 per cent, from N6, 061 trillion recorded when the bill was signed to law. While the All-share index appreciated by 1078.96 points or 4.1 percent, from 24,784.85 to 25,863.81.

In what is said that to be positive sign for the market transactions, equity transactions on Monday continued in an upbeat, as more stocks continue to enjoy share price appreciation.

Volume of shares traded also increased significantly, as 531.7million shares worth N4.3billion changed hands in 7285deals over 366.3million units valued at N3.5billion exchanged in 6,028 deals on Monday.

Tuesday’s trading saw 36stocks appreciating in price compared to 18 that constituted the losers table.
Precisely, Nigerian Breweries emerged the day’s highest price gainer with 331kobo while Benue Cement Company Plc, UACN Plc, West African Portland Company Plc and Dangote Sugar Refinery Plc followed with a gain of 80kobo, 73kobo,59kobo and 50kobo  per share.

On the other hand, African Petroleum Plc topped the losers table with 126kobo while First Bank, Red Star Express Plc, Stanbic-IBTC Plc and Diamond Bank Plc followed closely with a decrease of 19kobo, 18kobo, 16kobo and 13kobo per share respectively.

Accounting for the bulk of transactions on Tuesday also, the banking sub sector remains the most active stock in volume terms with 358.6million shares worth N2.9billion in 4,462 deals. The hotel and tourism subsector followed with 49.1million units valued at N227.2million while the insurance sub sector followed with 34.5million shares worth N35.9million in 284deals.

Diamond Bank Plc’s 83.5million shares worth N651million lifted volume in the banking subsector, followed by First Bank Plc’s 43.4million units worth N616.4million in94deals.

The stock market primary indicators: turnover volume, value and trades remained steady at midweek session. Total shares traded amounted to 324.6million worth some N3.11billion taking the total market capitalization higher to N6.33trillion and the index better by 0.10 per cent at 25,889.98 at the closing bell.

Leading Wednesday market were industrial heavies: PZ Cussons, CAP, GlaxoSmithKline and Nigerian Breweries. Banks made marginal advances led by FCMB up by 38kobo but Ecobank fell 23kobo as well as Union Bank down by 24points. Turnover volume in the banking sector stood at 196.58mn shares led by FirstBank's 21.52million as the most heavily traded stock of the day.

Downward share prices affected Cadbury, WAPCO, Union Bank and Dangote Sugar. The NSE Top 30 finished higher by 0.21per cent, the Food index added 0.66 per cent, and the Banking Top 10 index added 0.47 per cent and Oil and gas index flat.