By Chinwendu Obienyi
With the stock market currently experiencing sell-offs in quoted securities, share dealings by insiders valued at N12 billion have now been recorded on the trading floor of the Nigerian Exchange Limited (NGX).
Available market information obtained from the NGX’s website, indicate several insider deals involving directors, senior management and significant shareholders of quoted companies consummated in four trading sessions on the bourse.
Share dealing is a form of investing that involves buying company stock, with profit attained either by selling the stock for a higher price or via dividends. Each share is a single unit of ownership in a listed company, traditionally offered in the form of a stock certificate (though this form of ownership is less common today).
If a particular company increases in value on the market, its share price will increase correspondingly. However, if a company falls in value, so will the value of its shares shrink.
The dealings recorded so far have been carried out by Guaranty Trust Holding Company (GTCO), FBN Holdings, FCMB, Nestle Nigeria and United Capital. For instance, in a major sell-off, FBN Holdings’ largest single shareholder, Femi Otedola has sold down about 834 million shares in a deal valued at about N9.28 billion. This has led to most investors being confused as to why the billionaire is selling his shares and this has had an impact on its shares on the nation’s bourse.
After gaining 2.3 per cent on Monday, Daily Sun observed that the bank’s shares fell by 3.1 per cent on Tuesday, 5.50 per cent on Wednesday and remained unchanged at the close of trading yesterday. Its share price is currently standing at N10.30 per share.
Furthermore, four directors of FCMB Group, including the company’s secretary in a deal approved by the board, bought about 11.4 million shares while Nestle S.A, the majority foreign shareholder in Nestle Nigeria Plc, staked about N1.45 billion on the acquisition of retail minority shares through secondary market transactions.
In another disclosure, the recently inaugurated chairman of Guaranty Trust Holdings Company (GTCO) Plc, also acquired shares of the company in a deal valued at N4.5 million while United Capital has also reported insider shares purchase by senior management staff.