What would you be looking for in the Nigerian stock exchange tomorrow? I will be looking at how the market will react to the hammer on Union, Keystone, and Polaris banks, with the apex bank suspension of their board and management teams.
Understand that this is not just about these three banks. The notice released when Dangote Group headquarters was searched indicated that more than 50 companies are under the microscope.
This does imply that more actions are coming. So, are we at a time when investors will begin to pay attention in our information-immune stock exchange where no news makes any impact?
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Ladies and Gentlemen, be vigilant because what happened to Savannah Bank and Bank PHB remains evergreen. Those two banks disappeared within minutes. In short, they dissolved as Nigeria happened on them, and with our poor property rights regime, investors lost everything. Platinum Capital was my broker; it did not even have time to email us before it went dead as everything happened within 6 hours!
So, do not underestimate the current action in your risk model. Before I cause panic, depositors are not in my equation; my focus here is the investing public, not depositors of banks.
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Politics deals with the future, while Forensics deals with the past. Same applies to Investment, it deals with the future too. When you start making investors focus on the past, then you are not likely to accelerate.
What is the way forward and how prepared are we? That should be the conversation around political leadership, the judiciary is there to dwell in the past actions. We are too dramatic here, and that is why we achieve little or nothing.
It’s not like investors hate us, but when there’s a blurred line between discipline and antagonism, you end up confusing investors. Our optics aren’t great, less drama please!