FBN Holding’s share price fell by 10% for the second day running as investors reacted negatively to the shareholder debacle currently unfolding at the bank.
Checks by Nairametrics indicate the share price fell by 20% in the last two days after hitting a two-decade high of N22.3 per share.
The share price closed trading at N17.45 per share on Thursday, joining as one of the worst-performing stocks on the exchange.
Why the drop: Investors appear to be reacting negatively to the shareholder squabble in the bank following the declaration of a 13.3% shareholding by Barbican Capital Ltd.
- Analysts also suggest the letter from the solicitors of Ecobank and the response from Honeywell may have also rubbed off negatively on investors.
- Regulators have also kept mum as the matter rages on adding to the skepticism over who will take control of the bank.
- It is important to add that FBN Holdings as a holding company is fundamentally sound going by its efficiency ratios.
Banking Stocks fall: FBN Holdings was not the only bank that reported losses. Other members of the FUGAZ such as UBA, GT Bank, Access Bank, and Zenith Bank all recorded drops.
- UBA fell by 8.45% while GT Bank, Access Bank, and Zenith Bank fell by 5.56%, 9.54%, and 2.04% respectively.
- Meanwhile, Stanbic IBTC, Fidelity Bank, and FCMB, also fell by 10%, 10%, and 9% respectively.
- The banking All Share Index also fell 10.36%.
Regulators on FBNH: Nairametrics understands the central bank is meeting with the directors of FBN Holdings to deliberate on the FBN Holding shares declared by Barbican Capital.
- An online report also mentioned that SEC is reviewing the situation and could also make a statement on the matter.
In the circumstances stallholders find themselves with regards to the ongoing dirty Boardroom politics in First Bank, it’s expedient the CBN as the regulatory agency to intervene before Otudeko will ruin First Bank.