Diamond Bank Heads to 2-Month Low After Reporting Full-year Loss
Diamond Bank Plc (DIAMONDB), a Nigerian lender, headed to its lowest in more than two months after reporting a full-year loss.
The stock lost 12 kobo, or the daily limit of 5 percent, to 2.28 naira at 12:27 p.m. in Lagos. A close at this price will be the lowest since Jan. 25. Diamond shares have risen 19 percent this year, compared with a 0.4 percent decline in the Nigerian Stock Exchange All-Share Index over the same period.
Diamond recorded a loss of 11.3 billion naira ($71.6 million) last year, compared with profit of 1.3 billion naira a year earlier, it said in a statement published today on the website of the Nigerian Stock Exchange. Revenue rose to 96.3 billion naira, from 91 billion naira.
“The next few days are likely to be volatile for the stock but, ultimately, we expect the outlook on 2012 -- and the extent to which the market buys into management’s comments -- to begin to drive the shares,” FBN Capital said in an e-mailed comment today. “ Our view is that this will be positive and that the initial rally at the start of this year also reflects that expectation.”
FBN has an outperform recommendation on the stock.
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