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Investors chase Skye Bank shares

 

Stocks of Skye Bank Plc shares topped the most traded stocks as well as the gainers chart for the second consecutive day on account of renewed investor confidence.

Commenting on the stocks recovery, President of the Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike said that “the initial fear is wading off because of the Central Bank’s support.

“The low value of the stock is also attractive to investors, of which they are taking advantage off” he said

The bank’s stocks plummeted by 55 percent in seven consecutive trading sessions after the  Central Bank of Nigeria reconstituted its board as a result of persistent failure of Skye Bank to meet minimum thresholds in critical prudential & adequacy ratios.

The CBN stated that “Skye Bank’s Liquidity, Non-performing loan Ratios have been below & above the required thresholds, respectively, for a while”. The CBN then appointed new Board members with the sole responsibility of ensuring the speedy restoration of the health of the bank.

Following the intervention, Lagos State directed all its agencies, ministries and parastatals to increase business relationship with Skye bank.

Also Kogi State in a statement signed by its accountant general Alhaji Momoh Jibrin and addressed to the Grop Managing Director and Chief Executive Officer of the Bank Tokunbo Abiru dated July 18, re-appointed the lender as  the lead Collector of Internally Generated Revenue (IGR) for the state.

Even though Skye Bank is yet to release its audited financials for year 2015 and its 2016 first and second quarter results, the bank’s shares in the last two days has gained 19.01 percent, it traded 57,710,403 units of shares on Tuesday at the rate of 72 kobo per share, topping the day’s traders in volume terms.

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Ihesiulo Grace

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