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Otedola: First Bank shares fall as speculators offload


THE share price of FBN Holdings Plc recorded marginal decline yesterday after speculators who bought into the bank following the heavy activity on the stock in the course of share purchase by Femi Otedola sold off.

The share price fell by 1.20 percent to N12.40 per share from N12.55 the previous day, while volume traded also took a downward turn, declining to 73.062 million from 350.54 million on Monday, thus representing a 79.2 percent decline in activity level. Deals also slumped by 28.6 percent to 545 from 763.

Market dealers dismissed the low activity on the stock yesterday as either profit taking or price correction, saying that development in the coming days would determine if, indeed, it was price correction.

A dealer from the stockbroking firm to Otedola told Vanguard, “As you are aware, when we were buying for him (Otedola), it attracted more speculators into buying hoping that the price will go up, especially knowing that a negotiated price of N16.00 was done on the stocks.

“Now that we are not buying, it will be difficult to sustain the price, especially now that some of the third quarter (Q3) results of banks have been released and there weren’t any spectacular results. Also remember that price fluctuation is part of the market activities.

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