AMCON: Investors renew interest in rescued banks’ stocks

Following the signing of the Asset Management Corporation of Nigeria’s Bill by President Goodluck Jonathan last week, investors have renewed interest in rescued banks’ stocks, market operators have said.
According to operators who spoke to our correspondent in a telephone interview on Thursday, the share prices and traded volumes of the rescued banks have witnessed a positive turn since the signing into law of the AMCON.
The Chief Executive Officer, Vintage Wealth Managers Limited, Mr. Idowu Ogedengbe, said that the activities at the Nigerian Stock Exchange reacted to the AMCON‘s development.
He said, ”The AMCON has impacted positively on stocks generally at the stock market, especially the rescued banks. Since the president signed it into law, we have witnessed more bulls than bears. Besides, traded volume has also increased.”
The banking shares have dominated trading since the president signed the bill, except for Thursday, which analysts attributed to profit taking by the investors from the previous rally.
Ogedengbe added that the impact would be better when the AMCON kicks off.
He said, ”When the AMCON is fully implemented, there will be less selling pressures on the banks‘ shares. Investors will buy more into banking stocks. There are investors who have not bought into the banks‘ shares because there are holes in the books of the banks.”