Airtel Africa, Sterling Financial Holdings, Transcorp Hotels are stocks to watch this week

Airtel Africa, Sterling Financial Holdings and Transcorp Hotels are some of the stocks to watch this week, as the stock market resumes trading.

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 has disclosed that the naira devaluation will have a negative impact on the company’s earnings, as the Nigerian government unified the multiple exchange rates.

The company had stated in its 2022/2023 financial statement that the 1 per cent devaluation in the Nigerian naira would have a negative impact of $22 million on revenues, $12 million on EBITDA and $7 million on finance costs (excluding derivatives) on a 12-month basis.

However, with the naira devaluation up by about 65 per cent, the estimated impact is projected to be high. This will affect the bottom line of Airtel Africa, which could also impact the ability of the company in paying dividends in the long term.

READ ALSO:Airtel Africa’s net profit drops to $750m, Nigeria leads revenue growth

Although Airtel Africa didn’t express concerns, rather, the network provider praised the decision to devalue the naira. But regardless, investors need to trade with caution, as the disclosure of the financial impact could affect the capital market’s confidence.

Sterling Financial Holdings

Sterling Financial Holdings, the parent company of Sterling Bank, reported that its shareholders lost 12.88 per cent of their investments last week.

The loss was on the back of low demand for Sterling Financial Holdings shares, as investors snubbed the company for other investable assets.

Due to a lack of interest in Sterling Holdings among stock market investors, the company’s share fell to N2.57 kobo, from N2.95 kobo last week, opening the door for investors looking to buy the dip.

Transcorp Hotels

Within a week, shareholders of Transcorp Hotels saw their investment in the hospitality business increase by 20.55 per cent.

This placed Transcorp Hotels among the top 10 best gainers in the stock market last week, increasing the equity’s share price to N17.60 kobo, from N14.60 kobo.

As a result of the appreciation, Transcorp Hotels is one of the equities to watch this week, because the return on investment last week could prompt profit-takers to cash out on the gain this week by selling off, so it’s important to be cautious around Transcorp Hotels.

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