As the Nigerian stock market resumes trading this week, some of the stocks to watch out for are Dangote Cement, MCNichols and Learn Africa.
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.
Aliko Dangote has received approval to buyback 10 percent of Dangote Cement’s issued shares. This move by his firm will reduce outstanding shares, thereby, leading to an increase in the share price over time.
As the share repurchase by Dangote will reduce the cash reserve of the cement manufacturer, it will also increase the firm’s share value that will result to returns on investment for shareholders in the longterm.
However, note that share price doesn’t always rise in response to share buyback, as contraction could also occur, leading to investors losing money due to low demand for a firm’s share.
Share repurchase is a bet on possible future gains, but regardless of the outcome of the buyback, Dangote Cement plans to also pay dividend of N20 per share to shareholders for the year ended December 31, 2021, which is higher than the N16 paid a year before.
Shareholders of MCNichols will be jittery this week as the Nigerian stock exchange resumes following a disappointing performance at the capital market last week.
After five days of trading last week, shareholders lost 8.70 per cent of their investment in MCNichols after low demands for the firm’s share sent the equity price down the hill.
MCNichols share value disappointingly fell to N0.54kobo at the end of trading on Friday, below the N0.61kobo it opened last week Monday’s trading with.
The loss recorded by shareholders of the firm sent MCNichols to the top of the losers table, which means the company will resume trading this week from the bears territory, posing more risk to shareholders’ investment as the selloff could spill from last week.
While shareholders of MCNichols suffered 8.70 per cent loss in their investment, investors holding Learn Africa’s shares saw high return on their investment last week.
Shareholders of Learn Africa recorded 28.48 per cent growth in their investment after five days of trading, and will be looking to repeat the feat this week.
However, while their investment soar last week, it also increases possibility of a sell off among shareholders looking to take whatever profit recorded in the previous week.
So investors need to trade with caution as the capital market resumes for another unpredictable trading activity.
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