Zenith Bank sells N14.5 billion shares in one day

Speculations of a possible entry of a new investor, big enough to acquire a seat on the board of Zenith Bank Plc, became stronger yesterday, with another quantum of transactions executed on the shares of the bank.

Specifically, at the close of trading, transactions in the shares of Zenith Bank contributed 90.04 per cent of total volume traded for the day, leading the activity chart with 605.5 million shares valued at N14.5 billion.

This heavy transaction in the shares of Zenith Bank also lifted the overall volume of shares traded, as a turnover of 672 million shares valued at N15.2 billion changed hands in 2,436 deals, higher than the 237.75 million units, worth N3.50 billion recorded in 3,359 deals on Wednesday.

Recall that The Guardian had earlier reported such massive transactions in the shares of the bank on Wednesday, November 7, with a total of 288.27 million shares valued at N6.88 billion.

The amount of shares exchanged represent an increase of 200.79 per cent over a turnover of 149.65 million units valued at N2.79 billion transacted in 3,063 deals on the previous day.

Part of the speculation is that the buyer of the shares may either be angling for a seat on the bank’s board, or possibly trying to whittle the equity of the existing majority stakeholders.

The total volume of shares traded yesterday represents 182.8 per cent rise when compared to the 60.53 per cent growth achieved at the end of transactions on Wednesday.

A stock-broking firm familiar with the transaction executed on Wednesday, November 7, 2018 told The Guardian that such a big-ticket transaction in Zenith Bank shares is a strong indication that a strong contender interested in a seat on the bank’s board.

He said: “There was a large volume on Zenith transaction on Wednesday (November 7). There are speculations that someone wants to take a seat on the board of Zenith Bank, and that is why such huge transaction was executed.”

Further breakdown of yesterday’s transactions showed that Transnational Corporation of Nigeria (Transcorp), followed with the second highest volume traded with 9.34 million shares valued at N10.8 million, while FBN Holdings traded 7.29 million shares cost N55 million.

FCMB Groups traded 6.27 million shares valued at N9.48 million, while Africa Prudential sold 5.44 million shares worth N19.67 million.

Also, the All-share Index (ASI) gained 14.89 absolute points, representing a growth of 0.05 per cent to close at 31,984.60 points. Similarly, Market capitalisation rose by N6 billion to close at N11.677 trillion.

The upturn was significantly impacted by gains recorded in medium and large capitalised stocks, amongst which are; Flour Mills Nigeria, PZ Industries, Forte Oil, Guaranty Trust Bank, and Zenith Bank.

Analysts at APT Securities and Funds said: “We retain our optimism on a gradual recovery in currently depressed price levels on improved foreign investment.”

Market breadth closed positive with 16 gainers and 13 losers.

Flour Mills Nigeria recorded the highest price gain of 9.95 per cent, to close at N20.45 per share.

Consolidated Hallmark Insurance followed with a gain of 8.57 per cent to close at 38 kobo, while Union Diagnostic & Clinical Services gained eight per cent to close at 27 kobo per share.

PZ Industries rose 7.78 per cent to close at N9.70, while Prestige Assurance appreciated by 7.46 per cent to close at 72 kobo per share.

On the other hand, Ikeja Hotel led the losers’ chart by 9.76 per cent to close at N1.85, per share. Jaiz Bank followed with a loss of 8.89 per cent to close at 41 kobo, while Law Union and Rock Insurance declined by 8.77 per cent to close at 52 kobo, per share.

AG Leventis dipped by 8.33 per cent to close at 33 kobo, while Wema Bank shed 5.36 per cent to close at 53 kobo, per share.