As Nigeria’s stock market continued its bear run, there were some companies that caught the eye of Ripples Nigeria last week, though the stock market had declined in equity capitalisation and market share value.
The stock market is still recovering from the COVID-19 shock that affected business operation and investors confidence, pushing investors to spread their capital or seek other investment options aside from the stock market.
Ripples Nigeria Stocks-to-watch list 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 the Ripples Nigeria stocks-to-watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.
While the stock market plunges, investors were actively after some stocks, one of which is First Bank. The lender lend the rally of the financial market despite closing the last week with N7.30kobo, the same share price it opened last trading week with.
First Bank was one of the top three equities by highest volume of trade last week, three of which accounted for N8.931billion in 5,132 deals, contributing 35.92% and 48.98% to the total equity turnover volume and value respectively – so it’s a company to watch out for in the capital market in the new week.
While 39 equities appreciated in price last week, Portland Paints led the table of gainers. The company’s share price opened last week trading with N2.84kobo and closed higher at N3.25kobo at the end of last week’s trading.
The rise in Portland Paints occured as the company undergo acquisition process. Soon, Portland Paints as a name company will no longer exist as it will be absorbed into Chemical & Allied Product Plc. So when investing in Portland Paints, trade with caution.
Consolidated Hallmark Insurance
The Consolidated Hallmark Insurance topped the list of losers last week as investors dumped the insurance company’s shares the same week thirty-three equities depreciated in price.
According to data obtained from Nigerian Stock Exchange (NSE), Consolidated Hallmark’s share price plunge from N0.46kobo, which it opened the week with, to N0.33kobo per share. So investing in the company should come with caution.
Chemical & Allied Product Plc (CAP Plc)
CAP Plc is in the final stage of acquiring Portland Paints. The acquisition will lead to CAP taking over Portland Paints’ liabilities, including debts and employees wages. The acquisition is expected to have an impact on CAP’s balance sheet.
While both companies have projected the deal will be positive growth for CAP, investors still have to be mindful when purchasing CAP shares as the acquisition would increase CAP’s liabilities and outstanding debt.
It is important for investors to note that Fidelity Bank’s share price fell the same day the company announced it offered a N41.21 million bond. The disclosure was made on February 17, and Fidelity Bank’s share price fell to N2.45kobo from N2.49kobo, and further declined to N2.38kobo the next day before ending the week with N2.48kobo with less volume of shares acquired at the market.
Note that the bond is a debt that Fidelity Bank will owe to investors, although, it’s an unsecured bond. But still, the bond will impact on the company’s financial strength, while the capital will be used to run operation.
By Fakoyejo Olalekan…
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