Skye Bank Rallies With 9.09%, Leads Banking Stocks

For the second consecutive trading session, Skye Bank Plc, on Tuesday, July 19, led banking stocks at the Nigerian stock market as sell-pressure lingered, weighing a large number of quoted companies.

Skye Bank led the seven-stock gainers’ list with a gain of 9.09 per cent to close at 72 kobo, against average decline of 0.85 per cent yesterday.

The bank’s stock had risen by the highest possible percentage change of 10 per cent on Monday, leading the upside in a market that saw average decline of 0.25 per cent.

Skye Bank’s price appreciation was driven by increased market orders for the shares of the troubled bank, after key institutional customers, including the Lagos State Government, said they would stand by the bank irrespective of the recent forced change in the board and management.

Skye Bank was again the most active stock yesterday with a turnover of 57.71 million shares, sustaining the lead that started on Monday when it led activities’ chart with a turnover of N138.25 million shares.

Skye Bank, which had opened July 4 at N1.05, tumbled to a low of 60 kobo. The recovery followed the appointment of Skye Bank as revenue collector by Kogi State, coming on the heels of a state-wide circular by the Lagos State Government reiterating its commitment and confidence in Skye Bank.

In a circular circulated to all Ministries, Departments, Agencies and Local Governments yesterday by the Permanent Secretary, Ministry of Finance/Accountant General, Lagos State, Mrs A. S Umar, Lagos State had stated that it remains a stakeholder in Skye Bank, expressing confidence in the new board and management of the bank.

The circular described the bank as safe and in good financial health, noting that negative rumours making the rounds about the health of the bank were unfounded.

There were also reports that some hugely indebted customers of the bank might be paying their loans, thus bridging the liquidity gap, one of the major reasons for the apex bank’s takeover.