NALCO shares hit 10-year high post coup in Guinea
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Shares of the National Aluminium Company Ltd (NALCO) surged to a decade high on Monday due to a military coup and political unrest in Guinea, a major supplier of bauxite.
The political instability in the African nation has fuelled supply concerns for the raw material used in production of the metal, which may eventually hike aluminium prices.
Shares of the state-run company surged to decadal high of Rs 102.25 per share on the BSE. At the end of the day's trade, its shares settled at Rs 99.25, higher by Rs 5.40, or 5.75 per cent, from its previous close.
On Sunday, Lt Col Mamady Doumbouya, the head of Guinea's military special forces, announced on national television that his forces have arrested President Alpha Conde, and dissolved the government and national institutions.
The country's borders were closed and its constitution was declared invalid in the announcement.
The development has also caused panic in the aluminium futures market and the futures of the metal on the London Metal Exchange surged to decadal high levels.
Shares of Hindalco Industries also surged during the day. On the BSE, its scrip closed the day's trade at Rs 469.20, higher by Rs 8.30, or 1.80 per cent, from its previous close.
Guinea has the world's largest reserves of bauxite, the ore used to produce aluminum. Containing a content of alumina, Guinean bauxite reserves are estimated at over 40 billion tonnes.
