Nigeria’s tier 1 bank, FBN Holdings recorded huge trade volumes in the early hours of trade on Monday, October 25th, 2021.
According to information on the stock market trade engines monitored online, about 285,328,138 units crossed, driving up the shares to as high as N12.9 per share at the earlier part of the trading day.
Our initial thoughts suggest one of the major shareholders might be behind the trade as investors scramble to shore up their ownership of the bank.
Over the weekend, Femi Otedola was first to declare officially that he owned 5.07% of the bank and suggested there were plans to declare more. It is however unclear who is behind the current trade.
The Tier-1 bank sustained the rally throughout the day’s trading session as investors maintained a bullish stance trading over 350 million units of shares valued at N4.35 billion and taking the share price up 2.45% from the opening price of N12.25 to close the day at N12.55, although the shares traded as high as N12.90 during the trading session.
This comes after the bank disclosed through a notice filed with the Nigerian Exchange that Mr Olufemi Otedola and his nominee, Calvados Global Services Limited has acquired a substantial shareholding in the group, to the tune of 1,818,551,625 units of shares.
At today’s closing price, First Bank’s shares have rewarded investors who bought at a three year low of N3.7 with over 239% in return on investment. Year-to-date, however, investors who bought at N7.15 at the beginning of the year, have earned 75.52% on their investment.