Following the constant negative reports on Wema Bank finances and activities under the leadership of Moruf Oseni, Investors in the capital market are allegedly selling off their shares to exit their investment in the financial institution, according to BusinessPost.
In the past few days, the mid-level financial institution has been in the news over the fines slammed on it by different regulators over operational breaches.
It was also picked from the recently released audited financial statements for 2023 that the lender, led by Mr Moruf Oseni, recorded about N1.13 billion frauds in the fiscal year.
These reports, coupled with the stir caused by the recent recapitalisation policy of the Central Bank of Nigeria (CBN), have given investors a second thought about keeping Wema Bank shares in their portfolios
Generally, banking equities have been witnessing panic selling on the floor of the Nigerian Exchange (NGX) Limited as a result of the tighter policies of the apex bank.
In the past weeks, the central bank has come up with policies aimed at strengthening the banking industry in Nigeria, including announcing new minimum capital requirements for financial institutions to as high as N500 billion, to raising their cash reserve ratio (CRR), to prohibiting them to hold foreign exchange (FX) for long and others.
These policies have made investors rethink their exposure to equities in the sector at the stock market.
Business Post observed that in the last five trading sessions, Wema Bank equities have taken a downward trend at Customs Street after closing flat at N8.50 on Thursday, April 4, 2024.
The next day, its value went down by 3.53 per cent to N8.20, and on Monday, April 8, it fell by 0.61 per cent to N8.15.
The market was shut down on Tuesday, Wednesday, and Thursday due to the public holiday observed to Eid el-Fitr, and at the resumption of trading activities last Friday, the bank weakened by 3.07 per cent to N7.90, and yesterday, it further declined by 4.43 per cent to N7.55.
