Fidelity Bank announced on Monday that its Managing Director, Nnamdi Okonkwo had resumed a few weeks after being detained by the EFCC for being involved in the $115 million dollar Diezani “scam”.
Upon resumption, the bank named Alhaji Mohammed Lawal Balarabe who held forte in the absence of Okonkwo, as the new Deputy Managing Director of the Bank, subject to regulatory approval.
The market reacted in a somewhat neutral fashion on the day he was reinstated with the share price closing flat. However, the stock closed Wednesday in the negative region losing 4.65 percent. The stock has reversed its fortunes in the last 2 days of trading since he resumed, snapping a 3 day winning streak for the stock after it had gained over 12 percent.
The share price ironically gained over 10% in the three days following his arrest only losing once (2.5 percent) out of the 7 days that he was absent. The stock gained about 16 percent between when he was arrested on May 4 and May 13 the last day of trading before he resumed.
Whilst his resumption and its share price may not be related, investors will be watching to see if this drop is just a temporary blip.
Source: NSE
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