Diamond Bank’s Shares Hit 4-month High

Shares in Nigeria’s Diamond Bank rose to a four month high on Thursday, a day after the bank said four of its directors have resigned, in a move that could pave the way for the mid-tier lender to attract new investors.

The bank rose for the fourth straight session, up 7.19 percent to 1.49 naira. Diamond Bank has risen 24 percent since the start of this week.

Banking sources told Reuters on Wednesday that Diamond Bank was in talks with new investors while the bank’s chairman Oluseyi Bickersteth and three other directors resigned with immediate effect.

The mid-sized bank did not provide any reason for the resignation of Bickersteth, appointed in July, or for the resignations of the other directors, and did not comment on whether it was in talks with new investors. It said it would update the market in due course.

Analysts expect demand for the shares to rise further owing to the prospects of raising fresh capital.

“I expect it to continue,” one trader said, adding that the price rally could falter depending on the details of bank’s recapitalisation plans.