Investors are jumping on shares of Fidelity Bank despite the bearish trend of the Nigerian Exchange Limited.
The volume of shares traded on Fidelity Bank rose by 252 percent from 7,970,506.00 shares traded on July 1, 2021 to 28,094,407.00 shares valued at N64,532,321.76 on Monday, July 5, 2021 despite the price of Fidelity Bank’s shares moderating slightly by 0.86 percent on Monday to N2.3 a unit.
While it is unclear what led to the surge in transaction volume, it is likely due to insider dealings by directors or related entities. However, Fidelity Bank and other listed companies seldomly disclosed insider dealings instantly but will do so in a few days, weeks, or even months later as seen in recent disclosure filings.
Mr. Nelson Nweke, a non-executive director of Fidelity Bank Plc, has been increasing his stake in the bank in recent months. In June, Nweke bought additional 23,943,440 shares valued at N54,851,860.2.
The non-executive director, who was appointed to the bank’s board on January 1, 2021, had previously added 13,005,700 shares worth N26.922 million in the month of May 2021 at an average price of N2.07 per share. Therefore, the surge in volume is likely as a result of insider dealings.
The Nigerian Exchange Limited gained 0.02 percent or N4 billion on Monday to close at N19.923 trillion.
