Fidelity Bank Fires Up, Investors Ignore Earnings Delay
In the first two trading sessions this week, Fidelity Bank Plc had delivered about 14% price upticks, rising from N18.45 per share from Friday’s close to N21 – now trading near its highest valuation in 52 weeks.
The price appreciation posted in two days eclipsed the 5.4% year-to-date return delivered in roughly nine months. Fidelity Bank fired up as investors’ sentiment improved, though sustaining price level remains a top question about one of the volatile financial stocks in the local bourse.
Historical trading data obtained from the Nigerian Exchange revealed that Fidelity Bank’s share price has been fluctuating sustainably as investors continue to go short.
Afrinvest Securities Limited’s stock recommendation revealed on Monday that Fidelity Bank has the worst year-to-date return of 5.4%, reflecting investors’ degree of confidence in the financial services company.
Now, the stock market value of the bank’s 50.212 billion shares outstanding was uplifted to N1.054 trillion, but it had been here before the profit-taking activities on the stock.
Despite its earnings delay, a huge volume of the bank’s shares were traded in the market.Fidelity Bank led the volume chart ahead of the Independence holiday, accounting for 64.01% of the total volume of all transactions conducted in the Nigerian Bourse.
The Ticker: FIDELITYBK also emerged as the most traded stock in terms of value, with 53.29% of the total value of trade on the exchange.
Data from the Nigerian Exchange actually showed that 793.036 million Fidelity Bank shares valued at N15.877 billion were traded on Tuesday.
The market anticipates the release of its half-year result will drive the next momentum or otherwise depend on direction and some notable key developments.
Especially, the market sees answers to how the management plans to treat its huge judgement debt. The significant amount can raise fear about its going concern among investors. #Fidelity Bank Fires Up, Investors Ignore Earnings Delay FCMB Delivers 16% YTD Return to Shareholders in 9 Months
