How 2019 uncertainty, others affected banks investment in August

…Banking shares drop by 8.64% on NSE
…Late filing of results affected 2 banks shares-Analysts
Following slow growth in Gross Domestic Product (GDP) to 1.50 per cent in second quarter of 2018 as against 1.95 per cent recorded in the first quarter of 2018, and uncertainty surrounding the 2019 general elections , not less than 16 listed Banks’ shares on the Nigerian Stock Exchange (NSE) recorded decline in August, 2018.

The drop in banking shares translated to 8.64 per cent drop in NSE Banking index to 418.50 basis points as at August 2018.

The breakdown of the trading showed that Skye Bank recorded highest investors profit-taking, followed by Fidelity Bank Plc.

In fact, the shares of Skye Bank dropped by 20.3 per cent or N0.51 to N0.51 from N0.64 the market opened for trading in August while Fidelity Bank shares’ fall by 17.1 per cent or N0.34 to N1.65 as against N1.99 it started trading in August.

But capital market analysts explained that late filing of results affected both banks shares in August.

As Fidelity Bank has not released audited half year results of 2018, Skye Bank in a statement in early August explained to investing public that its 2016 and 2017 results are with the Central Bank of Nigeria (CBN).

The lender since 2016 has not submitted its audited results to the Nigerian Stock Exchange (NSE) despite promising the general public to comply with post-listing requirement that mandated prompt filing of results.

The company’s Company Secretary/General Counsel, Mr. Babatunde Osibodu, in a signed statement to The Exchange, said: “This is to inform the Nigerian Stock Exchange, our esteemed shareholders and other stakeholders of Skye Bank Plc that the Bank is yet to file its Unaudited Financial Statements for the period ended June 30, 2018.

“The Bank’s Unaudited Financial Statements for the period ended June 30, 2018 were approved by the Board at its meeting of August 09, 2018, and have been presented to the Central Bank of Nigeria (CBN), as the Bank’s primary regulator, for approval.

As with the Bank’s Audited Financial Statements for previous financial years (2016 and 2017), the Unaudited Financial Statements for the period ended June 30, 2018 shall be published as soon as the CBN grants its approval.

“We wish to assure all our stakeholders that the Bank remains committed to transparency, full disclosure, and compliance with regulatory requirements.”

Reacting on banks shares performance in August, Managing Director of High Cap Securities Limited, David Adonri, said: “Investors reacted to present macro economy challenges facing the country. When the nation’s economy is booming, it reflects on the banking shares vice versa.

“The banking sectors drive the capital market. The decline in the banking sector can also be translated into weak corporate earnings by some of these listed commercial banks on the Exchange”.