Stocks to watch this week in the Nigerian stock market are Geregu Power, Access Holdings and MTN Nigeria, as the companies look to boost revenue and shareholders’ investment.
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.
Africa Export and Import Bank (Afreximbank) is in talks with Geregu Power to acquire a substantial share in the electricity company through Fund for Export Development in Africa (FEDA)
Fund for Export Development in Africa is the impact development arm of the Africa Export and Import Bank. The negotiation, which is yet to reach advanced stage, comes two months after Geregu listed N250 billion value of shares in October.
The acquisition of Geregu shares translates to FEDA and Afreximbank investing in the electricity sector in Nigeria, which has been deplorable.
Although the volume of shares and value offered has not been revealed, the negotiation and outcome of the talks could influence the direction Geregu Power’s stock will go in a short-term. So investors need to trade with caution due to the impact it could have on their investment.
Access Holdings is seeking to increase its revenue through the pension market, and as a result, has completed the investment of an undisclosed amount into Sigma Pension.
The financial company acquired Sigma Pension through First Guarantee Pension Limited (FGPL) and First Ally Asset Management Limited, and will merge Sigma with First Guarantee Pension.
While this acquisition will reduce the company’s liquidity, in the long run, the investment will expand Access Holdings’ revenue sources, and increase its bottomline which in turn could raise dividends to shareholders.
The end result of the acquisition could make Access Holdings’ share red-hot in the stock market, as capital market investors will look to tap into the impact the acquisition could have on their investment.
The telecommunication company is planning to acquire more 5G spectrum to boost its chances against competitors in the telecom industry.
Currently, MTN Nigeria is the only network provider to commence 5G network service in Nigeria, after winning the bid with Mafab Communications in December 2021.
It is planning to join a second bid against Airtel and other industry rivals, a move that will worry Airtel, as the firm prefer not to bid, and has proposed to solely acquire the 5G spectrum.
With MTN’s chances at the bid higher than its rivals, winning the second spectrum will increase MTN’s subscriber base, revenue, and market share, as telephony and data users in Nigeria would subscribe to the telco for faster network.
Aside from revenue growth and strengthening market dominance, the benefit of the 5G network will enable MTN improve dividends to shareholders, therefore, increasing the demand for the telco’s share among investors in the capital market going forward.
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