For this week’s stocks to watch, MTN Nigeria Airtel and Ellah Lakes should be on your list, as the Nigerian exchange return for another week of trading activities.
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.
Last week, Ripples Nigeria reported that MTN Nigeria lost 7.28 million telephony users within the first half of 2023. During the same week, the company’s share depreciated slightly by 0.4 per cent.
The decline in MTN Nigeria’s telephony subscriber base dragged the total users down to 84.66 million from 91.95 million between January to June.
After the report, the telecommunications company recorded negative trade in the stock market, which resulted in shareholders losing a total of N23.09 billion within five days.
While the loss in the capital market wasn’t enough to put MTN Nigeria on the top 10 losers, the firm still made the decliners’ list and would be opening trading this week on the back of last week’s decline – so investors need to trade with caution.
In the first six months of this year, Airtel Nigeria had also lost 373,035 telephony users. This left the company with 60.19 million subscribers as at the end of June, compared to January figures of 60.56 million users.
However, the report of the loss wasn’t met with selloffs among the shareholders of Airtel Nigeria, instead, the value of the company’s share uptick by 3.2 per cent after five days of trading.
The growth in Airtel’s share price handed the company’s shareholders N150.32 billion gain. However, note that this could also attract profit-takers as the stock market resumes trading this week.
So investors should be cautious during trading this week, as last week’s gain could either fuel the momentum or result in selloffs, as profit-takers move to milk the gain recorded.
Last week, Ellah Lakes closed equity trading as the second top gainer after shareholders’ investment grew by 28.79 per cent, which represents N1.90 billion gain between Monday to Friday.
Shareholders’ investment value increased on the back of the capital market’s renewed interest in Ellah Lakes after the company announced that it will conduct a Rights Issue to raise N2.90 billion.
The Rights Issue will see Ellah Lakes sell one billion shares of the company to existing shareholders at a discounted price of N2.90 kobo per share, which is N1.35 kobo lower compared to its last closing price of N4.25 kobo.
While demand for Ellah Lakes’ shares has increased ahead of the Rights Issue (application closes on October 9, 2023), profit-takers could also descend on the firm, considering the weeks before, shareholders had recorded no growth, but instead decline in their investments.
Investors need to trade with caution.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: UBEC mum as N80m Kebbi secondary school lab equipment still undelivered since 2020
“Our laboratories are not conducive for learning; the termites have destroyed most of these laboratories, and there is not enough...
In Niger, communities suffer as multi-billion naira Auna Dam project remains uncompleted despite 38 years of investments
In Niger State, the over 20 communities around Auna River have had their hopes for fresh water, electricity supply and...
INVESTIGATION: Years after, 15km Eleme-Onne end of East-West Road remains death-trap despite billions released
In this report, ARINZE CHIJIOKE chronicles the sufferings of road users on the 15km Eleme-Onne end of the East-West Road...
Gaza attacks intensify as 12 Thais, 10 Nepalese killed in Israel
The current violence in Israel has claimed the lives of at least 12 Thai people and 10 Nepalese individuals. Eight...
INVESTIGATION: Poorly executed classroom projects force children out of school in Niger State
Once a vibrant hub of learning for pupils, Kodo Primary School now resonates a stark contrast to its former days...