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Access Corporation, Stanbic IBTC, Guinness make stocks to watch list

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The Nigerian stock market resumes for another trading week, and some of the stocks to watch are Access Corporation, Stanbic IBTC, and Guinness.

Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.

Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.

Access Corporation

Access Bank received fresh capital of N975.2 million from its Group Managing Director, Herbert Wigwe, after he acquired more shares in the company.

The fund was in exchange of Wigwe increasing his controlling stake in the financial institution to 4.6 per cent, from the 4.2 per cent he held last year.

This increases available capital for Access Bank and the influence of Wigwe in the company. It also shows the GMD sees Access shares as a valuable investment.

Wigwe’s share acquisition can spur minority shareholders to also buy in – as the stock activity of a major investor is often seen as a guide – causing the share of the firm and shareholders investment to rise in value simultaneously.

READ ALSO:Inter’l Breweries complain of Nigeria’s business environment amid N3.14bn loss

Stanbic IBTC

Stanbic IBTC is experiencing difficulty in recovering the balance of the N2,465,914,688 and $59,260.94 loan it extended to Ascon Oil.

Also, the oil firm allegedly forcefully recovered the property it provided as collateral for the loan, Ripples Nigeria had reported last week.

The firm had defaulted on the loan since 2020, and the struggle to recover the loan points to Stanbic IBTC being weak as it relates to loan recovery.

Stanbic IBTC’s inability to recover the loan reduces the available liquidity for the bank to do business, which could in turn affect its revenue growth.

It could encourage other debtors to employ Ascon’s methods, increasing non-performing loans in the firm, and putting depositors money at risk.

This could affect shareholders and the capital market’s confidence towards the bank, so investors need to trade with caution as the stock exchange resumes for another trading activity this week.

Guinness

Investors holding the shares of Guinness Nigeria lost -9.95 per cent of their investment last week due to sell off that brought down the equity’s value.

The capital market underpriced Guinness shares, as demands for the brewer drops in the capital market, knocking its share down to N74.65 per cent, from N82.90 per cent.

As a result, Guinness ended as one of the top ten losers at last week’s trading, and will be resuming trade from the losers’ list, so investors need to trade cautiously, as the bearish sentiment could spread into this week’s trading.

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