Several investors are gunning for positions in top banks as several banks get set to release mid-year reports and banks who pay out dividends twice annually prepare to disburse mid-year dividends.
Figures released showing trends of trade during the weekend reveal that almost half of the total trading valuation on the stock market had a connection to half-year positions in expected interim dividends.
Traders poured an estimated N5.81 billion on the shares of Nigeria’s three biggest lenders, including Guaranty Trust Holding Company (formerly Guaranty Trust Bank), United Bank for Africa (UBA), and Zenith Bank. These trades involving lenders accounted for over 53% of total trading value for the last five sessions.
A total of five lenders in Nigeria pay interim dividends on their half-year earnings. On that list are the top three, including Access Bank and Stanbic IBTC.
The half-year period for 2010 closes on the 30th of June, while submissions are accepted until the 31st of July. However, several lenders are expected to release it earlier.
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