The stocks to watch this week include Airtel Africa, Champion Brew and John Holt based on their trading performance last week.
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.
Airtel Africa suffered a sell-off last week, as profit-takers turned their sight on the telecommunications company in the stock market.
The profit-takers dragged shareholders’ investment value down by 5.20 per cent after the sell-off reduced Airtel’s share to N1,550 at the end of Friday’s trading, from Tuesday’s opener, N1,635.
As a result, shareholders’ investment is exposed to more risk this week, considering it will resume trading from the losers’ position.
So, investors need to trade with caution, as the bears could linger on Airtel, meaning the share price could further decrease, as last week’s sell-off could have triggered fear among shareholders.
While Champion Brew’s products might be one of the sought-after brands in Nigeria’s drinks market, its shares were not in demand last week in the stock market.
Rather, it recorded a decrease in demand among capital market investors, resulting in shareholders losing 15.64 per cent of their investment locked in Champion’s stock.
The loss was enough for Champion Brew to close last week’s trading as the top decliner, sinking the company’s stock value down from N5.50 kobo per share to N4.64 kobo.
This opens the door for investors looking to buy an asset in the dip, however, it also carries a red flag that last week’s sell-off could spill into this week, so caution must be applied during trading.
After four days of trading, shareholders of John Holt had a lot to celebrate last week, as the value of their investment increased by 20.55 per cent.
Demand for John Holt’s shares raised its stock price up by N0.15kobo from N0.73kobo to N0.88kobo, and indicates investors see the firm as an investable asset.
However, a rise in stock price often draws the attention of profit-takers, who often trigger a sell-off that result in investment loss for shareholders in a long position.
So, shareholders and stock investors need to trade with caution this week, as the share could go either way this week.
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