Ocean Rescue

Ocean Rescue

Forecast for Nigeria Bank's cut as rescued banks in freefall

June 10 (Easykobo) - The Banking sector continues to bleed as the recapitalisation plans for rescued banks have been derailed by shareholders' who have filed court cases which have blocked progress on the matter. CBN Governor Lamido Sanusi said that they will continue supporting bank mergers and will not get tied up in "endless litigation". To stay up to date with Nigeria financial environment, visit http://www.easykobo.com

 

 

The rescued banks have till 30 September to recapitalise or merge with new investors or face litigation. Sanusi added that "If the current attempt to arrive at a win-win situation is frustrated by shareholders, the CBN assures creditors and depositors that their savings, deposits and loans will be fully protected" adding that the central bank would have no obligation "to protect or give any value to shareholders."

 

 

This has led to a massive sell-off in the stocks for rescued banks. The situation from inside the exchange is that shareholders are becoming desperate to sell the shares in these banks but there are no buyers for them.

 

 

Oceanic Bank was down 4.7% to N 1.20

 

 

Union Bank was down 4.6% to 2.07

 

 

PHB was down 4.5% to 84 kobo

 

 

Intercontinental was down 4.1% to 92 kobo

 

Standard Bank SA said that slow progress in the consolidation of banks will effect the growth prospects of Nigerian stocks. Strategist Matthew Pearson for Standard Bank told reuters has cut its 2011 return forecast for Nigeria's 30 best stocks to 25% from 40% at the start of the year.

 

 

"Nigeria has had its own banking crisis, where almost 50 percent of local banks were put into effective liquidation, "NSE has significantly underperformed frontier market peers as well as emerging markets, but from a valuation point of view it is now very cheap," he said.

 

 

He revealed that Standard Bank is more interested in investing in Nigerian banks that have an agressive loan growth strategy rather than banks that are going to be part of M&A activity. Regarding mergers within Nigeria's banking sector, he said that mergers are likely but it does not expect foreign banks to acquire Nigerian bank's.

 

 

Among the stocks that they like, he picked Zenith Bank and First Bank for their strong fundamentals. Apart from these, Dangote Cement and LaFarge Wapco could benefit for the coming growth in consumer goods across Africa.

About the Author

EASYKOBO.COM is an interactive financial information hub for the Nigerian investor.

How to use the tweezers in Petz Rescue Ocean Patrol?

I don't know how to use it when you're healing a dolphin! Please HELP!!!!

I know right it is so hard because it constantly says be more gentle even if you are barely touching them but the way I learned how to do it is to grab the tweezers when it says be more gentle until it lets you move it up a little further and work on it from there good luck!!!

Wrightsville Beach Ocean Rescue Squad