LAGOS, JULY 11, 2016 – Diamond Bank shares are plunging at the Nigeria Stock Exchange (NSE), falling for the third consecutive day.Traders say this is as a result of capital concerns, following the dissolution of Skye Bank’s board over the same reasons.
On July 4, the top management of Skye Bank resigned in line with the decision of the Central Bank of Nigeria (CBN) to dissolve the management boards of the bank.
Skye Bank shares fell by 9.2 percent on Monday morning to its lowest in the bank’s history.
Diamond Bank’s shares fell by 9.5 percent at about 11am on Monday, falling to N1.82 per share, from N1.91 at the start of business on Monday.
The lender had traded N1.71 million in shares on Monday, as some portfolio investors were voting their monies out of the bank’s share.
The bank has lost 55 percent of its share value in 2016, with over 27 percent of that in the past three trading days.
As the capital concerns hurt the bank’s shares, the CBN has insisted that all Nigerian banks are healthy.
“For the avoidance of doubt, the infusion of a new Board and Management for Skye Bank PLC is a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios. Neither Skye Bank nor any other bank in the industry is in distress,” CBN had said in a statement.
“Therefore, the CBN would like to request the general public to ignore speculations or rumours to the contrary as they could only be the handiwork of mischief makers who do not mean well for the Nigerian banking system and its economy.
“As the regulator of the industry, the CBN hereby reassures the banking and general public that their deposits remain safe in any Nigerian bank.”
