Insider trading and acquisition will play a role in shareholders attitude at the Nigerian stock exchange this week, as the Nigerian bourse reopens for another round of trading.
Some notable investors took out their shares, while another company invested to expand stakeholders’s value. This pushed Julius Berger, Champion Brew, Access Bank and Cutix into Ripples Nigeria’s Stock-To-Watch list for this week.
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.
An insider trading occured last week at Julius Berger, which might interest investors this week. The company’s secretary, Cecilia Madueke, sold off part of her shares in transactions that occured for 15 days.
Madueke sold 303,234 shares in the last two weeks before the company announced its closed period. Note that when an insider sells stake, it is often viewed as the company rep believes their share value will depreciate in short-term or longterm.
She made N7.60 million from the deal, but lost N582.209 as Madueke sold at a lesser price compared to what market closed with. So when heading to the Nigerian bourse to trade, go with caution.
The company seem to be heading towards the exit of the Nigerian exchange amid struggle to meet the listing requirements of the NGX, which is 20 percent free float shares.
Champion Brew major shareholder, Raysun, has been acquiring shares of other stakeholders which will make the brewer a private company with no public shares.
Some shareholders have been cashing in on Raysun’s mandatory acquisition bid, selling at a higher price, which has driven Champion Brew’s market value up.
Investment of Access Bank’s shareholders is going into more acquisitions, as the firm took over another lender, African Banking Corporation of Botswana Limited.
The acquisition of BancABC is viewed as a way of expanding revenue potentials and investment value for shareholders of Access Bank, but it also poses an investment risk if the bank fails, so going into this week, investors need to weigh their options.
Another notable insider dealings that occured last week was in Cutix, as Ijeoma Oduonye, the Chief Executive Officer of the company, made N3.9 million gains while other shareholders lost N88.06 million.
The N3.9 million was made from the 795,000 shares she sold, but seven months ago, Oduonye had purchased 1.45 million for N2.82 million.
Oduonye’s involvement in profit-taking is often seen as an insider believing the market will go bearish in time, meaning his or her company’s shares will lose its value, hence, investment dwindling.
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