Dangote Sugar, Fidelity Bank, ABC make stocks to watch this week

The stocks to watch list this week consists of Fidelity Bank, Dangote Sugar and Associated Bus Company (ABC), after the capital market reacted negatively to their operational decisions.

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.

Fidelity Bank

The acquisition of Union Bank of Nigeria pushed Fidelity Bank into the list of stocks to watch this week, as the share price of the company closed down after the deal was announced on Thursday.

Fidelity Bank had acquired Union Bank to increase its asset value and also raise revenue through international market. The inorganic growth is meant to create value for the shareholders in the longrun.

However, surprisingly, the capital market reacted negatively after the acquisition was announced, with the share price trading flat at N8.35 kobo on Thursday before declining by 0.6 per cent to N8.3 kobo.

But during the week, the share fell by N0.45 kobo, wiping off 5.14 per cent from shareholders’ investment value to end the week on the decliners’ table.

READ ALSO:Oando, PZ Cussons and Chellarams are stocks to watch this week

As the stock market returns for another week of trading, investors should trade Fidelity Bank shares with caution.

Dangote Sugar

Over 10.83 per cent of investment value was lost by Dangote Sugar shareholders at the end of trading last week, according to obtained from the Nigerian Exchange Limited (NGX).

Following the loss, the share price of the company fell to N57.20 kobo, from 64.15 kobo within one week. The dip creates an opportunity for investors to buy Dangote Sugar’s shares at a reduced rate of N6.95 kobo going into a new week.

However, with the selloffs trailing Dangote Sugar amid the company’s plan to merge with Dangote Rice and Nascon Allied, investors need to be cautious while trading the firm’s shares, as uncertainty surrounds the movement of the share ahead of the completion of the consolidation.

Associated Bus Company

Shareholders of Associated Bus Company recorded the highest loss in investment after five days of trading last week. This earned the company the top spot of the decliners’ list.

Associated Bus Company will be opening this week’s trading on the back of N0.38 kobo loss in share price and 33.63 per cent loss in shareholders’ investment value.

Due to the selloffs that plummeted shareholders’ investment last week, investors need to trade Associated Bus Company’s share with caution, because even though the dip could attract the capital market to buy the dip, the bears could also extend their run into this week.

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