Airtel Africa, MTN Nigeria, Access Bank make stocks to watch list

Airtel Africa, MTN Nigeria and Access Bank are some of the stocks to watch this week, as the Nigerian stock market resumed for another trading 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

Airtel Africa is attempting to acquire the spectrum for 5G network in Nigeria, however, the company doesn’t want to go through the auction phase to avoid paying exorbitant price for it.

The network provider complained that its involvement in the first auction won by MTN and Mafab caused the cost of the 5G spectrum to rise to $273.6 million from $197.4 million.

In a bid to avoid the same situation in the second auction, Airtel said it is willing to pay the $273.6 million without joining a bid war, however, the telecoms regulator rejected the offer, creating a setback for the firm in its bid to increase revenue through 5G network.

Airtel Africa losing the second auction will send a negative message to investors that the firm is not ready to improve earnings, compared to industry rivals, hence, discouraging investment from the capital market.

MTN Nigeria

While the likes of Airtel Africa are yet to purchase the 5G spectrum, MTN Nigeria is planning on acquiring more. The y’ello network said it has a right to participate in the auction.

Nigerian Communications Commission (NCC) has not outrightly reject MTN’s request to purchase new spectrum, and the firm said the financial regulator had “provided the assurance that an operator’s emergence as a winning bidder in the 2021 auction of spectrum in the 3.5GHz spectrum band will not be a restriction on the said operator’s ability to participate in future licensing processes.”

Read also:Airtel Nigeria’s bid for 5G network suffers setback as NCC rejects firm’s $273.6m offer

The participation of MTN Nigeria will be a blow to Airtel, as competition in the auction will raise the cost of purchasing the spectrum, a situation Airtel is trying to avoid.

There are high chances of MTN winning the second auction due to previous auction. If this happens, it will improve the firm’s revenue generating capability, expand its market share, and limit the chances of industry rivals catching up.

Access Bank

The Chief Executive Officer of Access Bank, Herbert Wigwe, is putting his money where his mouth is, acquiring another set of shares last week. This brings his purchase spree to N1.91 billion worth of shares in two weeks.

While this move increased Wigwe’s controlling stake in Access Bank from 4.2 per cent it closed 2021 with to 4.9 per cent, it will also boost investors’ confidence towards the firm’s share, causing the value of the lender’s stock to rise.

Share acquisition by a majority shareholder like Wigwe often serve as a pointer or roadmap for minority investors in the stock market. If a substantial investor is selling off shares, minority shareholders might follow suit.

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