FBN Holdings, GTCO, Ardova and Wema Bank make list of stocks to watch this week

Stocks to watch this week consist of First Bank of Nigeria Holdings (FBN Holdings), Ardova, Guaranty Trust Holding Company (GTCO) and Wema Bank. Their inclusion is determined by related factors despite operating in different sectors.

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.

First Bank

First Bank is one of the stocks investors need to watch out for considering the capital market’s bearish sentiment towards the firm’s share, and the bears will likely strengthen their grip on FBH into this week.

The dwindling confidence is expected to remain pending Femi Otedola’s acquisition of a power plant, which has made him reduce is investment in FBH Holdings by over N7 billion.

With investors unsure of when the deal will be done, sell pressure is likely to persist considering Otedola’s hstory of selling his total investment in Forte Oil to acquire Geregu Power Plant. Keep in mind that a sell off by major investor often trigger same among minority shareholders.

Ardova

Investors holding Ardova shares will not get value for their investment for the period of full year 2021 after the management failed to growth profit, suffering N3.8 billion loss after tax.

The financial statements of Ardova was released on Thursday, and its unlike how the capital market will react to the earnings report, considering Ardova spent 95% of its revenue to make its products and service, with cost of sales up by 13.49%, higher than revenue growth of 10.7%.

Read also: Niger Insurance, Honeywell Flour and Okomu Oil among stocks to watch this week

However, considering Ardova’s expansion drive, which saw them listed as one of the companies that secure a marginal oil field, the management has shown its intention to expand revenue, and this might be comforting to shareholders, but its left to see if it’s enough to trump the lack of investment value in short-term.

GTCO/Wema Bank

Last week Friday, Ripples Nigeria released its report on best performing bank stocks for H1 2022, and Guaranty Trust Holding Company (GTCO) was missing, as the lender was the worst performing share.

In six months of H1, shareholders of GTCO saw their investment lose -21.15%, during the same period shares held by investors in Wema Bank record +343.05% growth.

Wema Bank closed H1 period as the best performing bank stock, showing investors were snubbing GTCO in the capital market for the former, at a period the Segun Agbaje-led firm was posting unimpressive earnings.

Considering how the first half of this year played out, investors need to monitor both GTCO and Wema Bank closely going into H2, and can click on this link to see how other bank stocks performed.

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