Fidelity Bank Shrinks by 13.33% as Investors Unpack Shares
Fidelity Bank Plc lost more than 13% of its market value on the Nigerian Exchange (NGX) due to activities of sell side investors. Its market value declined amidst a plan to pay an interim dividend to shareholders later in Oct, 2024.
Trading data from the domestic bourse revealed that Fidelity Bank became a target for sell side investors ahead of third quarter earnings. The bank share price fell to N13 on the trading platform, losing 13.33% week on week from N15.
In the last seven trading sessions, Fidelity Bank share price had surged to N15.35, reflecting investors’ confidence after successful completion of capital raising exercise.
The new shares sold have not been officially registered in the market, and no shareholders accounts have been credit by the Central Securities Clearing System, Afrinvest told clients in a note.
The market placed N416.158 billion as fair value of the bank’s 32.012 billion shares outstanding on the Nigerian Exchange at the close of trading session on Friday.
At the current market price, Fidelity Bank Plc is trading at a 27.57% discount to its 52-week high. The bank share price had surged to N17.95 in the equities market during the early part of the year before it retreated.
In a corporate action, Fidelity Bank announced an interim dividend of 85 kobo. The bank said dividends will be paid on Oct 25 to shareholders whose names are registered as members on Oct 17. #Fidelity Bank Shrinks by 13.33% as Investors Unpack Shares
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