Proshare Logo
   Market Date: 26-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Sanusi: Why Banking Stocks Remain Bearish

Category: Regulators

  Read (1885)
Sanusi: Why Banking Stocks Remain Bearish


12 Sep 2011 / By Obinna Chima 

Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, at the weekend attributed the uninspiring performance displayed by equities listed on the banking sub-sector of the Nigerian Stock Exchange (NSE) to the downturn in the global stock market. 


Sanusi, said this in a chat with newsmen at the end of the ‘Nigeria Sustainable Finance Week,” organised by Access Bank Plc in Lagos . He said: “First of all, on the issue of banking stock or any stock in Nigeria , we have to look at it within the context of global stock market performance. 


Wall Street is not trading well; Europe is not trading well also. This (the NSE) is a market that also has a lot of foreign funds and we have the sovereign debt crisis in Europe and unemployment issue in the United States . So what is happening in Nigeria is not necessarily tied to the local market, but also to the global market, because the funds don’t just come from the local market. 


“As for the banks, it is natural that if you are having mergers and acquisitions, people will wait. Most of the shares (rescued banks) are on technical suspension, as soon as the process is completed, then we will begin to see upward movement in stocks.” 


Commenting on the September 30 recapitalisation deadline, the CBN Governor expressed high optimism that the five rescued banks would scale the hurdle. 


“I am very confident that all the banks will meet the September 30 deadline. All the banks are having their Extraordinary General Meetings (EGMs) very soon. The three that have been recapitalised by the Asset Management Corporation of Nigeria (AMCON) are already out of the road and the other five will be through by the end of September. We have given them three months to show the market that they are on their way to integration. I have no doubt that by end of September, the crisis will be over,” Sanusi explained. 


He maintained that the adoption of the Chinese Yuan for the country’s forex reserves would help diversify Nigeria ’s holdings. 


He added: “I have been very clear that we are diversifying our reserves and the reason is that you can no longer ignore China . China is the second biggest economy in the world. And actually, just yesterday (last Thursday) after I left China , I learnt that the Chinese government has indicated that the Yuan will be fully converted by 2015. It is a currency that represents one of our major trading partners and this is something that we can use for settlement of trade transactions.” 


Source: Thisday


Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Regulators

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014