The Managing Director of Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, said there will not be any forbearance for stock broking firms that had issues with margin facilities, he disclosed this to Financial Edge, when he led the management of the organisation on a courtesy visit to the Nigerian Stock Exchange (NSE).
Kuru assured market operators that the corporation will not dump its stocks into the market for now. According to him “It is not even in our interest to dump our shares now because the market has gone down. So what we are trying to do now is to work in partnership with the management of the NSE and see how we can restructure the companies in such a way and manner that we do not dump the shares. We will do it in line with the activities in the exchange so that we follow the growth path.
AMCON was set up in 2010 to stablise the financial sector after the global meltdown of 2008 and 2009. In the process of stabilising the sector, AMCON bought some assets including equities of listed companies.
There has been apprehension that if AMCON should decide to offload those shares in the stock market now, its current bear state would worsen.
In his comment, the doyen of the market Sam Ndata said the market are happy to see the new management of AMCON, but stressed that the new management should do more than the past, bearing in mind why they were created.