As the stock market resumes trading for another session of sell offs and buy-ins from institutional and retail investors, Nestle Nigeria, MTN Nigeria and Ellah Lakes are some of the stocks to watch out for this week.
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In the last eight months, Nestle Nigeria share has depreciated by -16.4%, with shareholders selling the stock at N1,303 per share as at August 24, 2022, below the N1,560 they sold it for at the start of this year.
The depreciation was driven by sell off among holders of the firms share. And while this has caused shareholders in the firm to lose -16.4% of their investment in Nestle Nigeria, it has also opened the door for prospective investors to buy Nestle share at a cheaper price.
And with the substantial shareholder, Nestle S.A, pumping N304.28 million to purchase 232,011 shares of Nestle Nigeria last week, this signals the majority investor’s confidence in the firm, as acquisitions by an institutional investor are often seen as an impending growth indication.
MTN Nigeria became the first telecommunications company to enter the 5G network market in Nigeria, beating its rivals, Glo, Airtel, 9mobile, and other internet service producers. This will enable MTN to have the first slice of the market and increase its industry share.
Being the first mover in the 5G market, network users in search of faster internet speed could switch to MTN from other telecoms companies still stuck in the 4G coverage, which is slower than the 5G network.
This will improve MTN’s market competitiveness against its rivals, and increase its revenue, thereby positively impacting shareholders’ investment through dividend payouts, which could improve due to rise in turnover, as well as high demand for prospective investors hoping to share in the dividend.
Ellah Lakes investors lost 10% of their investment last week after the oil palm company closed the trading session as one of the top five losers, following sell off among its shareholders on the exchange floor.
Investors were willing to sell their stock at N3.60kobo per share at the close of Friday’s trading in a bid to take out their investment from Ellah Lakes, resulting in the share losing N0.40kobo from the N4 it opened the market with on Monday.
While its not known if the shareholders will extend their sell off into this week, one thing is certain, Ellah Lakes will be opening this week’s trading from the losers table, so investors need to trade with caution as the stock market resumes.
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