Oando, PZ Cussons and Chellarams are stocks to watch this week

This week, Oando, PZ Cussons and Chellarams are the stocks to watch in the Nigerian equity market due to operational and stock market 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.

Oando

Oando’s plan to acquire Nigerian Agip Oil Company (NAOC) from Italian oil & gas company, Eni, has been met with several pushbacks from one of Agip’s joint venture partner and workers’ unions.

The Nigerian National Petroleum Company (NNPC) Limited has stated that the deal could have legal implications due to Agip’s failure to follow the joint venture contractual agreement.

Also, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have threatened to withdraw their services over the sale.

The acquisition of Agip is meant to boost the asset profile of Oando and eventually its income. Following the news of the acquisition, the firm’s shares has been one of the most sought-after in the equity market, leading to shareholders’ investment value rising by 38.74 per cent last week.

READ ALSO:Oando, Omatek, others extend Nigerian capital market’s bullish run with N30.3bn gain

However, with the pushbacks from the unions and legal implications raised by NNPC, the appetite of the capital market towards Oando might be affected as trading resumes this week, so equity investors need to trade with caution.

PZ Cussons Nigeria

PZ Cussons Nigeria ended trading among the top 10 gainers in the stock market last week after reports that the parent company based in United Kingdom wants to buyout shareholders.

Following the news, demands for the shares of PZ Cussons Nigeria took a upward swing, resulting in 14.29 per cent growth in the investment value of its shareholders.

Investors in the equity market are positioning for the N21 per share PZ Cussons Group in UK is willing to offer the minority shareholders of the firm.

Although the offer is slightly above the N20 per share the stock price closed last week, however, note that the week before, the share price was N17.50 kobo.

While the increase brings significant benefits to the current shareholders, it could also attracts profit takers, leading to a possible decline in the share price – so trade with caution, as the buyout offer has not been approved yet, so uncertainty still surrounds the buyout.

Chellarams

Chellarams shareholders lost 18.77 per cent of their investment value last week after the share price of the firm declined by N0.67 kobo on the back of depreciating interests in the company.

The decline in shareholders’ investments represents N484.35 million loss. This also knocked down Chellarams’ market valuation from N2.58 billion to N2.09 billion within five days.

At the end of the week, Chellarams’ share price fell to N2.90 kobo from N3.57 kobo, opening the floor for prospective investors looking to buy the dip. However, it’s still necessary to trade with caution, as the bears could extend their grip over Chellarams’ share movement in the capital market.

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