Nigerian Breweries, Guinness and Honeywell made it into the list of stocks to watch this week, as the stock market resumes trading for another 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.
Nigerian Breweries is losing its market share to rivals in the brewery industry, according to an industry analysis by Ripples Nigeria last week, and it stock has also slumped within H1 2022.
Its market share fell slightly to 45.7%, from 45.8% between January to June, at the same time Nigerian Breweries share devalued by -5.7% from N50 to N47.15kobo, indicating sell off among its shareholders.
This is despite its revenue growing by 30.9% in the first half of 2022, rising to N274.03 billion, and surpassing the N209.21 billion generated during the same period, so investors need to trade with caution, as Nigerian Breweries stock trails the market share.
Honeywell Flour investors lost 14.49% of their investment last week, after sell off among shareholders depreciated the company’s stock from N2.83kobo per share, to N2.42kobo.
This comes amid Flour Mills of Nigeria’s plan to buy Honeywell’s minority shares at a premium price of N4.20kobo. Such acquisition plan is expected to boost capital market’s confidence going forward, but the decline in the stock shows investors lack of interest in Honeywell, so trading cautiously is advised.
Guinness Nigeria is one of the best performing stock in the Nigerian stock market year-to-date despite also experiencing a dip in its market share, which slumped to 34.5% from 35.1% in H1 2022.
The market share’s decline has not affected investors confidence in the firm, as stock grows hand-in-hand with net profit, considering the former rises from N39 per share to N84, increasing investors investment by 115.3% in the last eight months, on the back of profit after tax growing 1146.7% in H1 2022.
This growth in share value, however, puts Guinness stock in a potential sell off by profit-takers, making the brewer one of the stocks to watch out for going forward.
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