Wema Bank Slumps by 9% on Huge Volume Selloffs
Wema Bank Plc’s market value declined by more than 9% due to heavy sell-offs on the local bourse on Tuesday. Its sharp price depreciation aligned with a broader downturn in the stock market.
Trading data from the Nigerian Exchange (NGX) showed that the bank’s share price fell for the second day amid deteriorating investor sentiment.
Trading activities in Wema Bank shares have been heavy over the last seven trading sessions in the equities market. However, transaction volume came in multifold on Tuesday.
Based on trading data, the share price fell to N30, as 18.968 million units of Wema Bank, valued at N576.820 million, were executed in transactions led by sell-side stock traders.
The tier-2 lender is trading at about a 17% discount to its 52-week high in the latest market correction. Wema Bank had recently hit a 52-week high of N36 before bearish action on its shares.
At the close of the trading session on Tuesday, the market value of Wema Bank Plc.’s 40.118 billion outstanding shares reduced by 9.09% to N1.203 trillion.
Amid a drive to join the tier-1 banks, the shareholders and directors at the annual general meeting in May agreed to acquire a commercially sound bank.
“It was unanimously resolved “that the Directors should take necessary steps to enable the Bank to acquire a licensed commercial bank or any other business combination in furtherance of the Bank’s growth objectives, and to appoint such professional parties and advisers to act and do all such things as may be necessary to give effect to the acquisition”, Wema Bank said in a regulatory filing.
