Why All Nigerian Stock Traders Must Monitor Insider Dealings

Since the Nigerian Stock Exchange (NSE) mandated listed companies to disclose insider dealings, a lot has changed as traders and stakeholders now have an idea of who is buying what, at what price level and quantity being bought.

However, despite the level of details, most traders are yet to realise the importance of these details to stock performance. For instance, in the last one month, Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank, has been buying the company’s stock in large quantity and acquired a total of 7.532 million in the last one month.

On July 8th, the bank announced its wholly-owned subsidiary, Access Bank Zambia Limited was in talks to acquire Cavmont Bank Limited. While this may still be wrong on the part of the CEO who has seemingly taken advantage of his knowledge of the ongoing deal, it allows traders to model their strategies in line with executive actions/purchases by those with undivulged fundamental details of a certain stock.

Presently, Excelsior Shipping Limited, a substantial shareholder of Flour Mills of Nigeria Plc, has acquired almost 3.5 million of the company’s shares in the last one month, while Blakeney LLP, a substantial shareholder of UAC of Nigeria Plc bought 40 million units of the company’s shares last month.

The new disclosure policy will now allow stock traders to have an understanding of corporate actions by those previews to details they do not have.

The good news is, Investors King has devoted a complete section to insider dealings. Just click here every morning to know who is buying what, at what price level and the sequence and pattern of purchase.