Firms’ directors trade N45bn own shares in Q1

Directors of listed companies on the Nigerian Exchange Limited (NGX) traded N44.82 billion worth of their shares in the first three months of 2022, with trading in the shares of BUA Foods on January 5, 2022 accounting for 90 percent of the insider dealings.

Trading in the shares of listed companies by their directors are regarded as ‘insider dealings’, which require the concerned firms to update the NGX, which in turn notifies the investing community.

According to an investment expert, Fahd Dameer, directors of companies can sell their own shares for reasons that include payment of tax, purchasing a property, retirement or resignation, and when the company sees the market as inflated. Shares could be purchased if they are part of their total salary packages or issued when options are converted, among other reasons.

Apart from BUA Foods, other listed firms whose directors traded their shares include United Capital, Flour Mills of Nigeria, Living Trust Mortgage Bank, Cutix, Ecobank, Ellah Lakes, and Nigerian Breweries. Others include Zenith Bank, Nigerian Exchange Group, Nestle Nigeria, Custodian Investment, and Vitafoam Nigeria.

The cross deals in BUA Foods shares involved one billion units of shares, which were traded at N40.25 per share. The transaction was worth N40.5 billion.

Wole Oshin of Custodian Investment traded 15.625 million units of shares at N7.1 per share worth N110.94 million. Adtec Limited, an institutional investor in Cutix, traded 18.337 million shares in Cutix Plc worth N42.40 million.

Ecobank’s Allain Francis Nkontchou traded 131.38 million units of Ecobank shares at an average of N7.40 per share worth N972.21 million. CBO Capital Partners, an institutional shareholder in Ellah Lakes, traded 20,000 units of its own shares at N4.25 per share worth N85,000.

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Sanusi Yinusa Olalekan, a director with Flour Mills, traded 433,286 units of shares worth N12.99 million. CitiTrust Holdings, an institutional investor, traded 2.57 million units of shares worth N2.92 million between February 4 and 7, 2022.

2.128 million units of Nestle Nigeria’s shares worth N2.969 billion were traded by Nestle S.A, an institutional investor. Kolawole Babalola Jamodu traded 20,000 units of shares worth N0.97 million in Nigerian Breweries.

Pilot Securities and VFD Group traded 9.4 million units of shares worth N212.69 million in the Nigerian Exchange Group between February and March 2022. United Capital’s 5.6 million shares were traded by its directors at prices that ranged from N10 to N14 in the first quarter of 2022. Their trading in their own shares amounted to N74.3 million during the quarter.

Bamidel Makanjuola traded 34,816 units of shares in Vitafoam Nigeria worth N0.79 million in March 2022. Quartum Securities and Dennis Olisa traded 5.4 million units of shares in Zenith Bank between March 1 and 24, 2022. The various transactions amounted to N145.59 million.

BUA Foods ended Q1 2022 at N59.50 per share, with its 52-week year low at N40.2 and year high at N66 per share. Custodian Investment ended the quarter at N5.95 per share, having oscillated between the year low of N5.20 and year high of N8.15. Cutix closed on March 31, 2022 at N2.27 per share with a year low and high at N0.93 and N3.35 per share respectively.

Ecobank’s year low and high were N4.80 and N13.2 per share respectively, but on the last trading day of Q1 2022, its closing price was N12 per share.

Nestle Nigeria’s share price was N1,395; Nigerian Breweries, N40.45; Ellah Lakes, N3.12; United Capital, N12.60; Vitafoam, N22.30, and Zenith Bank, N22.40.

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