March 13 (Lagos) - As the speculation over who will be the next CBN Governor grows some banking stocks could be in the buzz over the next month.
Mr. Rewane , a famed economist and ex-MD/CEO of FMDQ exchange resigned from the board of FMCB today and that sparked speculation that he could be the next Governor of the apex Bank. When the Prime Minister of England stopped over in Lagos during her trip to Nigeria in 2018, she visited the new FMDQ office on Idowu Taylor-Churchgate St in Victoria Island.
Less than 5 years ago when the current Governor of resigned as MD of
ZENITHBANK and took the job, some people thought that it would be beneficial to the stock of Zenith because of this move.
However looking back over time on easykobo historical prices you will find that the move did not work out well for those investors who bought with that reasoning. On June 2 2014, one day before appointment of Governor the Zenith stock closed at N 25.01 per unit. Almost 5 years down the line the stock closed today at N 22.55 per unit. So the stock actually lost more than 10% over almost 5 year period.
So investors should study fundamentals of a given stock before deciding to buy into it. Going by emotions and rumors you will find that the reality is quite different.
A CBN Governor position requires highest standards of integrity and also comes with huge scrutiny. It would be wrong in the first place to expect a CBN Governor to favor a particular bank just because he was a board member at a time. The Central Bank controls all banks and regulates their operations.
If Mr. Rewane gets the Governor position, it would be great news for the Banking industry and economy overall. The benefits will not be limited to only one Bank. There are others in the race for the Job but if Mr. Rewane is in the race he is clearly the front runner for the Position.
reporting for easykobo.com on Tuesday, March 13 2019 from Lagos, Nigeria