Poor Performance, Lack of Market Confidence made Skye Bank Emerged Worst Performing Stocks In 2016

Sequel to change of management that recently took place with Skye bank, the financial institution has been plagued with many odds. Most recent is the poor performance of the bank in the latest Nigeria stock marketing rating.

Forte Oil Plc, Skye Bank and others have emerged the worst performing stocks in 2016 in percentage terms after statistics obtained from the Nigerian Stock Exchange (NSE) showed their depreciation value, which dropped by 74.42 per cent and 68.35 per cent respectively.

According to a report, Forte Oil Plc was worth N330 before it depreciated to the aforementioned percentage to close trading at N84.43 per share.
The report also stated that Skye Bank followed with a loss of 68.35 per cent to close at 50k compared with N1.58 it opened for the year. Caverton followed suit by shedding 63.56 per cent to close at 90k against N2.47, while Diamond Bank lost 61.74 per cent to close at 88k in contrast with the year’s opening price of N2.30 per share.
Sterling Bank dipped 58.47 per cent to close at 70k against N1.83 and Lafarge Africa, which opened for 2016 at N96.80 decreased by 57.70 per cent to close at N40.95 per share, among others.
Commenting, Mr. Ambrose Omorodion, the Chief Operating Officer, InvestData Ltd., attributed Forte Oil’s loss to weak earnings and AMCON related deal.
Omordion said that Skye Bank’s performance was due to lack of market confidence in its stocks since the change of management by the Central Bank of Nigeria (CBN) and huge loss position posted in 2015 financial year.
He added that Caverton’s weak earnings and narrow business model affected the company’s price movement, noting that dwindling earnings on increasing non-performing loan affected Diamond Bank shares.
“Sterling Bank’s reason for the dip is due to market forces, while Lafarge Africa is increasing negative position of the company,’’ he said.
Conversely, Dangote Flour was the best performing stock in percentage terms during the review period having improved by 276.11 per cent to close at N4.25 per share against opening price of N1.13.
UBA Capital trailed with a growth of 108.40 per cent to close at N2.73 compared with N1.31 and Total, which opened at N147.01 rose by 103.39 per cent to close at N299 per share.
Seplat increased by 87.19 per cent to close 2016 at N379. 99 against the opening price of N203 and Mobil Oil inched 74.38 per cent having closed the year at N279 per share against N160 opening price.
Seplat improved by 87. 19 per cent to close at N379.99 against N203 it opened for in the year and Mobil rose by 74.38 per cent to close 2016 at N279 per share compared with opening price of N160.