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Insider Dealing: N7 Billion Dumps on FCMB Stocks

Investors purchased shares worth N7 billion in FCMB Group Plc in the last two trading sessions.



FCMB - Investors King

In a suspected insider dealing, a certain investor or investors have been acquiring FCMB stocks since Friday.

In the last seven trading days, transactions on FCMB stocks jumped from between 3.9 million and 5 million shares per day to 932.889 million shares valued at N3.26 billion on Friday. On Monday, this number rose to 1.024 billion shares estimated at N3.687 billion to bring the total transactions on the tier II bank to N6.952 billion.

At the Nigerian Exchange Limited (NGX) on Monday, FCMB transactions accounted for about 50% of the value of the total transactions carried out at the bourse.

Investors exchange 1.280 billion shares valued at N7.919 billion on Monday, FCMB stocks accounted for 1.024 billion of the total shares traded and at least 50% of the N7.919 billion value.

FCMB is yet to disclose the purchase as mandated by the Security and Exchange Commissions (SEC). Most companies usually disclosed it a few months after the transaction took place to minimize its impact on the company. For a better understanding of insider dealing, read below.

Understanding Insider Dealing

Insider dealing is when people, who have access to certain information regarded as ‘insider information’ either via their position in the company or relationship with people working in the company, purchase a stake in the said company based on the information.

It is illegal and prohibited by the Investment & Securities Act (ISA 2007). In Section 111(I), the Act states that “a person who is an insider of a public company shall not buy or sell, or deal in the securities of the company which is offered to the public for sale or subscription if he has information which he knows is unpublished material, price-sensitive information in relation to those securities”.

This includes all the former and present staff of security exchanges and constructive insiders like investment bankers, accountants, stockbrokers and others who have access to certain confidential information while providing their services to a public traded company.

The act imposed not less than N500,000 fine or equivalent or double amount of the profit made or loss averted or imprisonment of up to 7 years in case of an individual convict and N1,000,000 fine for corporate offenders.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.


Global Bonds Surge at Swiftest Pace Since 2008 Crisis as Rate Hike Speculations Subside



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Global bonds are experiencing their most rapid surge since the 2008 financial crisis, with a Bloomberg measure of global sovereign and corporate debt returning 4.9% in November.

This marks the largest monthly gain since December 2008 when it soared 6.2% during the depths of the recession.

The surge is fueled by growing speculation that central banks, led by the Federal Reserve, have completed interest rate hikes and are poised to initiate cuts in the coming year.

The recent rally has been accentuated by comments from Fed Governor Christopher Waller, signaling a dovish stance. James Wilson, a senior portfolio manager, noted the significance of Waller’s dovish remarks, stating, “It sounds like the Fed is all but done in their hiking cycle.”

US 10-year yields slid to 4.26%, and Australian bonds experienced a surge, with 10-year yields dropping 14 basis points.

The current bond rally reflects a shift in expectations towards looser central bank policies, providing relief for corporate bonds.

Spreads on global investment-grade corporate debt are hovering near the lowest levels since April 2022, indicating increased investor optimism about a gentle economic slowdown.

The average yield on corporate bonds has retreated to around 5.3%, down from nearly 6% in October, according to Bloomberg data.

Despite this positive trend, there remains a divergence in views between credit investors and rates traders, with the latter anticipating more aggressive Fed rate cuts that would necessitate a more pronounced economic deceleration.

The resolution of this tension is likely to be a focal point as central banks navigate economic uncertainties in the months ahead.

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Nigerian Exchange Limited

Market Sheds N132 Billion as Union Bank Bows Out from NGX Official List



Union bank - Investors King

The official delisting of Union Bank of Nigeria from the Nigerian Exchange Limited (NGX) on Monday triggered a notable N132 billion loss from the market capitalization.

NGX Regulations Limited, the regulatory arm of the Nigerian Exchange Group, confirmed the delisting in a notice to trading license holders.

Union Bank’s shares were suspended on November 14, leading to the delisting, which resulted in a market cap loss.

On its last day on the NGX Daily Official List, Union Bank had a market cap of N193.65 billion, with shares closing at N6.65 per unit.

Titan Trust Bank Limited, Union Bank’s core investor, had earlier announced plans to acquire minority shareholders’ shares, leading to the delisting.

Despite the delisting impact, the All-Share Index closed positively at the end of Monday’s trading, rising by 0.17% or 123.33 points to 71,353.81.

However, the market cap closed at N39.040 trillion, N132 billion lower than the N39.172 trillion recorded on the previous Friday.

Key performers in the market included AccessCorp, United Bank for Africa, Zenith Bank Plc, and Universal Insurance Plc.

Positive investor sentiments resulted in 32 gainers and 20 losers. Notable gainers included First Bank of Nigeria Holding, John Holt, and Tantalizer, each gaining 10%.

ETranZact led the losers’ chart with a 9.09% dip, and Unity Bank, amidst reported business combination talks with Providus Bank, landed on the losers chart with a 9.24% loss.

The volume of transactions on the NGX slightly increased to 746.67 million units from 582.77 million units traded on Friday.

Banking stocks, including AccessCorp, UBA, and Zenith Bank, were the major drivers of the day’s trend, accounting for volume and value in the market.

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Stock Market

Asian Shares Slip Ahead of Key Inflation Data and OPEC+ Meeting



Asian equities

Asian shares experienced a dip on Monday as investors awaited crucial inflation data from the United States and Europe later in the week.

The gold rose to a six-month high of $2,017.82 per ounce before moderating to $2,009 while Japan’s Nikkei eased by 0.3%, although it still maintained an 8.6% gain for November.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3%, boasting a monthly gain of 6.4%.

Meanwhile, Chinese blue chips lost 1.1%, representing a 2% downturn for the month.

Investors approach the month-end cautiously due to substantial gains recorded with markets like the S&P 500 that have been rallying for four consecutive weeks to post a 8.7% gain for November—its best performance since mid-2022.

Central banks, including the Federal Reserve, are closely watched for signals on future monetary policy.

The Fed’s preferred inflation measure, due Thursday, is expected to show a slowdown, reinforcing expectations of potential rate cuts.

The oil market faces uncertainty ahead of the OPEC+ meeting on Nov. 30, with discussions on production caps and potential extensions of voluntary cuts.

While European Central Bank President Christine Lagarde signals no rush to ease, the euro hovers near its recent four-month high against the dollar, which weakened against several major counterparts.

Oil prices experienced a brief dip in anticipation of OPEC+ decisions.

The week ahead is pivotal for financial markets, balancing inflation indicators, central bank messages, and crucial oil market decisions.

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