The share price of construction firm, Costain (W.A) Plc, Monday rose further as a result of sustained investor demand in the stock market.
Demand for Costain’s share has been high since last week following the disclosure that construction had liquidated its debt with First Bank of Nigeria Limited (FBN). A receiver manager was appointed by the bank last year as a result of the debt.
However, Costain notified the Nigerian Stock Exchange (NSE) last week that the debt had been fully repaid.
Expectedly, the development piqued investors’ interest in it shares, which led to a rise of 43 per cent last week. Also, when trading resumed yesterday the stock appreciated further, garnering 9.7 per cent to close at N1.81 per share.
The construction firm had last November assured shareholders that its affairs were not being run by receiver manager.
However, the company last week said it paid the final installment of the concessionary amount via its letter to FBN dated January 13, 2014 and the bank had acknowledged the sum paid via its letter dated January 15, 2014.
Commenting on the issue, NSE said: “First Bank of Nigeria Limited has confirmed that based on this development, Costain (West Africa) Plc is deemed to have discharged its obligation to the bank on this facility. The bank also stated that steps are being taken to discharge the receivership at the Corporate Affairs Commission (CAC) and all relevant authorities will be notified as appropriate.”
Meanwhile, trading on the Nigerian bourse on the first day of the week was bearish as 43 stocks lost value compared to 17 that made gains.