The CBN has just announced the revocation of Skye Bank’s license and take over! Let’s discuss the effect of this news on banking stock and likely banks investors might channel their fund to?
@Akeem, definitely, Sentiments will be negative but like @lanra, let’s see what happens this week
I expect investors to dump some banking stocks next week – we could see shares of some smaller banks to fall…Overall sentiments will be negative but top banks with high capital adequacy ratio could witness further upside as investors reshuffle their portfolio to safer banks.
Skye Bank’s issue has started as far back as 2015 when CBN first took over management, shareholders wealth at that point were already eroded, so I think smarter investors had already liquidated their holdings before now.
I have shares in defunct Skye Bank too, the stock was a top gainer last week, whatever happens, let’s see.
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