There were several activities in the business community last week, with companies conducting initial public listing or having their financial strength called into question.
This is why the likes of First Bank, MTN Nigeria, Access Bank and Union Bank took up space in the stocks to watch list for this 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.
First Bank continues to appear on the stock to watch list as the ripple effect from the clampdown from Central Bank of Nigeria expands. Last week, credit ratings companies, Moody and Fitch reviewed the bank.
Both Moody and Fitch downgraded First Bank, a decision that signals to global investors or creditors that the probability of the company meeting its loan obligation is low and risk of conducting business with it is noe higher.
These reviews by Moody and Fitch might have an impact on stock market’s investors and shareholders as the Nigerian bourse open this week, so trade in caution.
The telecommunications company has been giving its shareholders something to be excited about, from impressive first quarter financial result to listing its stocks in Rwanda.
The public listing of shares gives its shareholders value and sends a message that the company’s financial health is strong across its markets in Africa. Last week’s IPO in Rwanda might boost shareholders’ and investors’ confidence this week.
The Nigerian deposit money bank has been put into the market, with the owner of the company, Atlas Mara, aggressively looking for buyers in order to exit from its biggest asset in Africa.
This sale shows the majority shareholder in Union Bank, Atlas Mara, doesn’t have confidence in the Nigerian lender and wants to take its investment out to save what’s left.
This might have an impact on the company’s image at the capital market this week. Being put on the market by its majority shareholder water down the profitability status of Union Bank – so trade with caution due to triggers.
The company continues to adopt inorganic growth across Africa by purchasing already existing banks. Its latest acquisition, Grobank Limited, might weigh heavily on the company’s financials.
This is because Grobank Limited has financial crisis and has lost market value, yet Access Bank is willing to take up the South African bank. Investors and shareholders need to be cautious when trading as Grobaank will be a liability on Access Bank in the short-term.
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