Management, misinformation, breach of regulator’s guideline, push FBN Holdings, GTCO, two others into stocks-to-watch list

First Bank Nigeria Holdings, Guaranty Trust Holding Company (GTCO) Dangote Cement and BUA Cement found their way into this week’s Ripples Nigeria Stock-To-Watch list.

From the management that failed to report correct information to its shareholders, to the company that breached a regulator’s guideline for appointment, amongst others, made up this week’s Stock-to-Watch list.

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

The lender’s stock value took a hit last week after losing 11.95 percent in five days, causing the firm’s total investment to dwindle to N396.64 billion from N450.48 billion.

This cost investors N53.84 billion as at the end of Friday. The market’s confidence is not so high with First Bank following the leadership tussle between Femi Otedola and Tunde Hassan-Odukale.

But with the intervention of the lender having little or no impact last week, investors most trade with caution this week, as the capital market might still be wary since stock value fell to N11.05 per share from N12.55kobo.

GTCO

Ripples Nigeria released a report on Friday, that Guaranty Trust Bank could have breached Central Bank of Nigeria’s CEO rules to appoint Segun Agbaje as GTCO boss.

Agbaje had been appointed immediately his tenure ended as GTBank CEO, an appointment that is against CBN’s three year restriction rule for a bank CEO.

Read also: Multiple insider tradings, acquisition moves push firms into this week’s stocks-to-watch list

So uncertainty surrounds how the capital market will react to the revelation this week, but take a clue from market’s reaction to First Bank’s management failure to follow regulator’s guideline.

Dangote Cement

Aliko Dangote’s cement company released an impressive financials for the nine months period of 2021, with revenue hitting N1.02 trillion, in contrast to the N761.4 billion report during the corresponding period of 2020.

This signals a positive sign to the capital market, cementing the management’s ability to grow its revenue at a high pace, and milk the ban of cement into Nigeria.

BUA Cement

Against the N156.5 billion BUA Cement reported as nine months revenue in 2020, the company generated N186.9 billion same period this year, following the growth path of its market rival.

This is an impressive result to boost investors’ confidence, and grab its share of investment pouring into the sector in the capital marketit’s this week – it has given investors a reason to bet on it going forward.

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