Insider trading refers to the purchase or sales of shares of a company listed on the NSE by directors, a person discharging managerial responsibility, employees with sensitive information, advisers, and consultants to the company and their connected persons.
Insider trading in shares of companies is motivated by a lot of factors: desire to take a position on the board, desire to earn more profit or avoid losses, among others.
Between January 2020 and now, Director and others in senior positions in 8 banks have either make significant purchases of the shares of the banks they have interest in or sell off part of the shares they own in such banks.
Here are the details of who sells and buys what? in Bank share between January 2020 and June 2020.
Source: Nigerian Banker research
Herbert Wigwe, the GMD/CEO of Access Bank sold over 34 million units of the bank shares worth N348.4 million in January 2020. The shares belong to his company called Trust Capital Limited. He also bought 7.5 million units of the bank shares worth N53.4 million in June 2020 also though a company called Tengen Holdings (Mauritius) Limited.
Six Directors, including Senior Consultants, Company Secretary, and other Head of Units of Stanbic IBTC Bank purchases varying units of the bank shares at different times in the last 6 months. One Director, Lilian Ijeoma Esiri sold shares worth N7.6m in March 2020 while Stanbic Africa holdings purchased 25 million shares worth N755 million also in March 2020.
A Directors and the Board Chairman of UBA bought varying units of the bank’s shares while Bili Odum, the Company Secretary, sold his indirect shares holding by Workfield Foundation worth N14.9 million in January 2020. 7 relatives of the Board Chairman of UBA bought various units of the bank shares all in June 2020.
Mrs. Tairat Tijani, a Non-Executive Director of Sterling Bank bought 300 million units of the bank shares worth N345 million in an indirect holding via her company Ess-ay Investment Limited in March 2020. While Paul Ogwumoh, a senior management staff of GTBank also bought the bank shares worth N6.7 million in March 2020
MD/CEO of Fidelity Bank, Nnamdi Okonkwo, and 2 other Non-Executive Directors bought varying units of the bank share. While the board chairman, Ernest Ebi sold over 2.6 million units of the bank shares worth over N3million in the last 6 months.
U.K Eke, the GMD of FBN Holdings bought 20 million units of the bank shares worth N101.6 million between April and March 2020. While a Non-Executive Director and the Company Secretary also bought varying units of FBN Holding shares between January and June 2020.
Olufemi Badeji, a Director of FCMB bought 1 million units of the bank shares worth N1.75 million in June 2020