Thursday, April 11, 2013

Nigeria banking stock index falls 5.42 pct on profit taking

LAGOS (Reuters) - The index of Nigeria's Top-10 banks fell almost 5.42 percent on Wednesday in volatile trades, on profit taking, after some lenders declared good dividends at the start of the earnings season, traders said.

Nigerian stocks fell for the second straight day on Wednesday, by more than two percent on sharp falls in banking stocks. The all-share index had shed 2.35 percent to 33,286 by 1129 GMT.

Diamond Bank, the worst hit, fell 20 percent in two days to 5.67 naira per share, after saying it will not pay a dividend, and instead announcing plans to raise $550 million in fresh capital.

Traders say investors had been booking profits from banking stocks after lenders started to announce full year 2012 earnings late last month. Banking stocks have risen 20 percent overall this year.

Other decliners included United Bank for Africa (UBA), Skye Bank and Access Bank, all down around 9.9 percent.

Source: http://news.yahoo.com/nigeria-banking-stock-index-falls-5-42-pct-125945816--finance.html

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