Bloomberg News

Diamond Bank Nigeria Drops Most in Three Weeks: Lagos Mover

March 02, 2012

Diamond Bank Plc (DIAMONDB), a Nigerian lender, retreated the most in three weeks after falling by the daily limit.

The stock slid 5 percent, the most since Feb. 10, to 2.47 naira at 1:50 p.m. in Lagos, the commercial capital.

“The pressure is likely downward on the stock this month as investors expect it to come up with a loss after a profit warning,” David Adonri, chief executive officer of Lambeth Trust & Investment Co., a Lagos-based brokerage, said by phone today. “There is no incentive for the stock to move up until the management comes up with a first-quarter profit forecast.”

Diamond expects a net loss of about 454.4 million naira ($2.9 million) for the fourth quarter, it said on Sept. 8. Nigeria’s central bank implemented reforms following a debt crisis in 2008 and 2009. The banking regulator introduced December as a common year-end for the country’s lenders. Full- year 2011 results are expected to be released from this month.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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