Nigerian Stock Exchange records steep rise in insiders’ transactions
In what looks like a clear departure from tradition, there is steep rise in numbers of insiders trading transactions reported by listed entities on Nigerian Stock Exchange portal.
However, the Stanbic IBTC Plc led as top listed companies where connected persons are trading acquiring shares at this time.
It is suffice to say that market regulators have lowered incidence of insiders trading abuse followed by requirement for timely disclosure.
In the past, using privilege information available for an investing decision in certain stocks by the insiders was grossly abused
This had affected the performance of the market as an investment vehicle.
Since the beginning of the year, NSE has received about 40 notifications of shares dealing by various insiders in listed companies.
Amid rising cases of coronavirus in Nigeria, more than 20% of opening value on the equities segment of the Exchange has been knocked off.
NSE equities market capitalisation berthed at ₦11.4 trillion after close of trading session on Tuesday as year to date loss moderated.
However, top executives in some listed companies are actively purchasing more shares, a clear departure from what the street thinks.
Analysts told MarketForces that though the disclosure is good but there must be information that has not been made public yet driving the transactions.
Insiders’ deals in stocks
This week, a number of companies including the Sterling Bank, GTBank, Consolidate Hallmark Insurance and many others have reached out to NSE to lodge their insiders trading transaction.
Pattern of the report shows that the prices of these transactions are however conducted at market value as at the date.
In a notification, Consolidated Hallmark Insurance Non-Executive Director Mrs. Ngozi Nkem consummated 20 million shares of the firm at 25 kobo.
The insurance firm notice reported March 3rd as date when the trading was closed.
Sterling Bank Plc reported a cross deal of its shares from Balogun Shuaib Adesina to Ess-ay investment limited where its non-executive director, Mrs. Tairat Tijani has interest.
The transaction which came in four deals but at ₦1.15 per share was consummated on 31st March, 2020. Cumulative numbers of shares that were traded was 300 million.
GTBank also revealed that its employee Paul Ogwemon purchases 370,000 units of its shares at ₦18.15 on March 12 and 13, 2020.
Also, United Capital reported to NSE that its employee, Kayode Tinuoye, Head of Portfolio Management purchases 500,000 of its company shares on March 6th at ₦3.06 per unit.
Stanbic IBTC Holding Plc initial notification revealed that Mrs. Olufunke Amobi, its Head of human capital acquired 11,159 the Holding’s shares at an average price of ₦26.78 on 9th April, 2020.
Meanwhile, Stanbic IBTC Holding had reported on March 27 that one of its Directors, Mrs. Lilian Ifeoma Esiri purchased 39,290 units of Stanbic IBTC shares at an average price of ₦26.00 on 26th March.
On March 13, NSE was also notified about Stanbic Africa Holding Limited, a significant shareholder, that purchased 15 million shares at ₦30.25 per unit on 18th March, 2020.
Earlier on 17th March, 2020 Stanbic Africa had purchased 10 million shares of the group at ₦30.20. Incidentally, Chidi Okezie, its company secretary acquired 10,000 units of the stock at ₦30.30.
On 12th March, Sanni Family Trust where its Managing Director Yinka Sanni has interest picked 94,534 shares of Stanbic IBTC at ₦29.48.
On the same day, Stanbic IBTC Senior Governance Consultant, Ese Nkadi, purchased 20,000 share in the group at ₦29.50.
Again, on March 25 Stanbic IBTC had in an initial notification explained that its Director Mr. Kunle Adedeji acquired 100,000 shares of the group at an average price of ₦26. The financial service group stated that this deal was consummated on 24th March, 2020.
In March, UBA had in a notification told NSE that one of its Directors, Mr. Uche Ike, purchased 2 million of its shares at an average price of ₦4.75.
The shares deal were consummated at 1,229,382 shares at ₦4.70, 321,856 shares at ₦4.75 and 448,762 shares at ₦4.80 on March 25, 2020.
Also on March 30, Mr. Ike who is considered as connected person at UBA Plc. purchased 5,528 shares at ₦5.05
Earlier, on March 27 Mr. Ike had purchased 75,574 shares at ₦5.05 on the NSE.
On March 23rd, Red Express Plc in an amendment notified the NSE that Mr. Sulaiman Koguna, its non-executive director purchased 61,827,730 shares of the company at ₦2.98 on 5th March, 2020.
In a notice to NSE, UAC Plc revealed that its non-executive chairman, Mr. Daniel Owor Agbor acquired 3,727,000 shares of the company at ₦8.73 per share.
The notification stated that the transaction was concluded on 6th of March, 2020.
Custodian Investment Plc notified NSE that Mr. Odunsi Akintunde Owolabi, a director at Custodian Life Assurance Limited purchased 185,854 of its shares on March 3rd at ₦5.05 per unit.
Meanwhile, on the same day, the insider at the Custodian Plc Mr. Owolabi also acquired 1,386,000 at ₦5 per share.
Other companies that have reported insider trading transactions cases include Morison Industries, Chams, Fidelity Bank, Access, Berger Paints and Dangote Cement Plc.
It also include WAPIC Insurance, Union Diagnostic & Clinical Services and Courtville Business Solutions Plc.
Nigerian Stock Exchange records steep rise in insiders’ transactions
