The directors of First City Monument Bank (FCMB) are buying into the lender’s shares in the Nigerian stock market, a move that encouraged minority shareholders to retain their investment.
In a market analysis of the directors’ shares acquisitions, it was gathered that at least 7.37 million shares were acquired last month by four top directors in the bank.
The stocks with the estimated value of N25.8 million were acquired by the Executive Director of FCMB Group, Femi Badeji, Company Secretary, Adedibu Olubunmi, Director, Joshua Simisola, and Subsidiary Director, Obaro Odeghe.
Badeji bought 2 million shares and paid N7 million while Olubunmi and Odeghe also acquired the same volume of shares at the same price.
Simisola bought the highest volume of 5.37 million shares valued at N18.80 million.
The development was seen as a direct invitation to the capital market to buy into the firm as minority investors use the acquisition of shares by the bank’s director to determine if they should buy, sell or retain the investments in the lender.
When a company director sells off shares, it discourages investors from buying or retaining such investment. So they sell in response as it sometimes means the directors don’t see growth prospects in such stocks.