Trading this week will be held for four days due to the public holiday slated for Monday, October 3, to mark Independence Day. Stocks to watch within these four days are Guaranty Trust Holding Company (GTCO), NGX Group, and Nigerian banks.
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.
The subsidiary of Guaranty Trust Holding Company (GTCO), GTBank, has been in the news for reason relating to hack and theft of customers money. Ripples Nigeria had reported last week that account holders lost millions of naira to fraudsters.
While the losses were recorded in the first and second quarters, it was only revealed last week, and it’s left to be seen how shareholders will react to the report this week, considering it could frighten depositors. So, investors need to trade with caution as the stock market resumes.
The Nigerian Exchange Group (NGX Group) and shareholders, led by Olayinka Olajuwon and Bamidele Ibironke, are in court over the affairs of the company.
Amid the confrontation between the company and the shareholders, other substantial investors, Miri Strategic Emerging Markets sold 1.5 million shares to take out its N29.64 million worth of investment in NGX Group.
Six days later, Cardinal Stone sold over 25.42 million shares to withdraw its N457.63 million investment from the company. The disagreement has also led to NGX Group board postponing its request to raise N35 billion, which the shareholders have kicked against.
With both shareholders and the management still in court, it might affect the confidence of minority investors, and usher in a sell-off in the coming weeks, so investors need to be cautious.
While names were not mentioned, it has been revealed that Nigerian banks owe telecommunications companies N80 billion for Unstructured Supplementary Service Data (USSD).
To recover the debt, MTN, Airtel, and other network providers have threatened to shutdown the USSD service. This will prevent customers of the banks from accessing their banks USSD platform, and in return, prevent the banks from charging the N6.98 per transaction they have been receiving since March 16, 2021.
This will affect the topline of the banks, as well as the bottom-line if the threat is carried out, thereby, possibly affecting dividends growth, considering dividend is taken from net profit to improve shareholders’ investment.
It’s unclear how shareholders will react to this threat in the capital market, as their investment could be affected in the long-term, so as the equity market resumes, trading with caution is advised. Note that the bankers’ association haven’t addressed the threat yet.
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