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Trading resumes on shares of troubled banks

By Michael Eboh
The Nigerian Stock Exchange (NSE), Tuesday, lifted the full suspension placed on the five banks whose Managing Directors and Executive Directors were sacked by the Central Bank of Nigeria (CBN) couple of weeks ago.


The NSE had three weeks ago placed the shares of the banks on full suspension, immediately the sack of the Management of the banks was announced by the CBN to protect investors of the banks from massive erosion of their investment.

The banks include:  Afribank Nigeria Plc, Intercontinental Bank Plc, Oceanic Bank Plc, FinBank Plc and Union Bank Nigeria Plc.
The Director-General of the NSE, Professor (Mrs.) Ndi Okereke-Onyiuke had last week gave hints on a possible lifting of the suspension, hinging the planned lifting on the expiration of the two weeks period and a proposed meeting with the Governor of the CBN, Mr. Lamido Sanusi, who was expected back to the country after a town hall meeting with foreign investors in London, Last Friday.

Following resumption of trading in the shares of the troubled banks, three of the banks – Union Bank Nigeria Plc, Oceanic Bank International Plc and FinBank Plc recorded share price loss, with some of them recording the maximum five percent share price dip.

Shares of Union Bank which opened at N12.60 per share, dropped by five per cent or N0.63 to close at N11.97 per share, Oceanic Bank recorded a share price loss of N0.24 to close at N4.70 per share and FinBank Plc shed N0.07 to close at N1.48 per share.
The share price of Intercontinental Bank Plc and Afribank Nigeria Plc were unmoved because of the fact that the minimum number of units required to make market in shares were not achieved, as less than 50,000 units of their shares were traded.

However, light trading was recorded in the shares of the five banks. Afribank Nigeria Plc recorded a turnover of 5,878 shares valued at N29.15 million in 11 deals, FinBank Plc traded 2.14 million shares valued at N3.16 million in 19 deals and Intercontinental Bank Plc exchanged 23,450 shares valued at N0.15 million in five deals.

Oceanic Bank International Plc recorded a turnover of 443,335 shares valued at N2.08 million in 15 deals and Union Bank Nigeria Plc recorded 188,839 shares valued at N2.26 million in 49 deals.


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