Diamond Bank Plc, a Nigerian lender, plans to raise $300 million as it seeks to expand credit to customers, Chief Financial Officer Abdulrahman Yinusa said.

Nigeria's share index climbed to a 20-month high to the cross 27,000 point threshold on Thursday, driven higher by gains in banking and commodities stocks.

Shares in Diamond Bank rose 9.83 percent to 4.47 naira per share, their second day in a row of rising almost the maximum 10 percent allowed, boosted by strong earnings.

The lender on Tuesday said its nine month pretax profit hit 23.2 billion naira, up from a loss of 6.9 billion naira during the same period a year ago.

Diamond Bank is one of the 25 stocks eligible for market making under a new stock exchange system meant to boost liquidity, so its share price can rise up to 10 percent a day, up from the old 5 percent limit that still holds for most stocks.

Nigeria's share index has gained almost 30 percent this year, one of the best performing frontier markets in Africa. The last time it went above 27,000 was February 2011.

Other gainers included heavyweight Dangote Sugar, and Sterling Bank up more than 9.5 percent each.

Source: Reuters

The Nigerian Stock Exchange (NSE) has concluded arrangements to increase the number of stocks that market makers make from the initial list of 16 stocks that the programme commenced with on September 18, 2012 with additional nine stocks.

Effective Thursday, October 4, 2012, the following stocks were added to the Market Making programme: Access Bank; Academy Press; Custodian & Allied Insurance; First Bank Plc; Dangote Sugar Plc; Union Bank Plc, NASCON and Nestle Nigeria Plc as well as AIICO Insurance Plc.

"This development is in line with the promise made by The Exchange that all the stocks quoted on the Exchange that are trading above par value will be added to the Market Making programme over a period of six months.

Chief Executive Officer of NSE, Oscar Onyema had last month assured all stakeholders that the introduction of Market Making would help drive liquidity in the marketplace to the benefit of Retail Investors, Institutional Investors, the Broker Dealer Community as well as Regulators. He also said that it will improve the price discovery process and thus reflect the true value of companies.

"I believe you will agree with me that the market is in for better times with the introduction of the Market Making, Securities Lending and Short Selling initiatives. Let us collectively give it all the support it needs, especially during the six month rollout period".

NSE had kick-started the programme on September 18 with PZ Cussons Nigeria Plc; Nigerian Bag Manufacturing Company Plc; Presco Plc; International Breweries; Lafarge Wapco; Fidson Healthcare Plc; Redstar Express Plc; Zenith Bank Plc; Sterling Bank Plc; D.N.Meyer; Diamond Bank; FCMB; Fidelity Bank Plc; Nigerian Breweries Plc; Guaranty Trust Bank Plc and UAC Nigeria Plc. (UACN).

Source: Daily Trust

Nigeria's Union Bank said on Wednesday it had swung to a pre-tax profit of 12.46 billion naira ($79.05 million) in the year to June, compared with 61.57 bln naira loss in the same period last year, after operations were recapitalised by a new investors.