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market | IST

Nalco shares hit 10-year high after reports of army overthrowing Guinea government

Nalco shares surged to a 10-year high after reports suggested special forces soldiers appeared to have ousted the president of Guinea, which has the world’s largest bauxite reserves.

State-run miner Nalco's shares were in high demand on Monday after reports suggested Guinean special forces ousted Guinea's President in a coup on Sunday. The stock crossed the Rs 100 level in intraday trade for the first time since April 2011.
Analysts say the political turmoil in Guinea, which has the world’s largest bauxite reserves, and supply disruptions could push up alumina prices. Guinea accounts for about 22-25 percent of the global production of bauxite.
Nalco shares jumped as much as 7.9 percent to Rs 101.25 on BSE - their highest intraday level since March 31, 2011.
At 1:20 pm, the Nalco stock was up 7.6 percent at Rs 101 on the bourse. Nalco shares sharply outperformed the headline Sensex index, which was up 0.35 percent. The S&P BSE Metal index was flat at the time.
Shares were traded in high volumes. A total of 38.93 crore shares changed hands so far on Monday, as against a daily average of 37.65 crore recorded in the past two weeks, exchange data showed.
Special forces soldiers appeared on Sunday to have ousted Guinea's long-serving president, telling the nation they had dissolved its government and constitution and closed its land and air borders, news agency Reuters reported.
The United Nations condemned any takeover by force and the West African region's economic bloc threatened reprisals, the elite army unit's head, Mamady Doumbouya, said "poverty and endemic corruption" had driven his forces to remove President Alpha Conde from office, according to the report.