Trading volumes on Wema bank shares have been unusually high for the last four trading sessions this week. Over one billion shares have been traded so far this week. On average, Wema bank trades a few million shares daily.
At a current price of 55 kobo per share, Wema bank is currently trading slightly above it’s 52 week low of 50 kobo per share. Year to date, the stock is down 45%.
Third quarter 2016 results were largely flat, with the bank making a profit after tax of 1.26 billion naira compared to 1.29 billion naira for the corresponding period in 2015. The bank is unlikely to meet up with the full year profit after tax of 2.3 billion naira it made for the financial year ended 2015.
Wema bank was at the brink of distress a few years ago, when a new set of majority owners SW 8 Investment Company Limited and First Pension Custodian Limited injected capital into the bank.
It’s unclear if these high volumes are related to block sale by one of the majority shareholders.
More to follow…