Operational, stock activities make FBN Holding, Conoil, Ikeja Hotel stocks to watch this week

The stocks to watch this week are First Bank of Nigeria (FBN) Holding, Conoil and Ikeja Hotel. Their operational and stock market activities pushed them into the list 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.

FBN Holding

First Bank of Nigeria (FBN) Holding has been in the news in the past couple of days amid report of a new largest shareholder, Oba Otudeko.

Otudeko, the former board chairman of FBN Holding, had acquired 4.77 billion shares of the company, which gave him 13.3% majority stake.

His return to lead FBN Holding came as a shock for many in the capital market and private sector, following his sack in 2021 by the Central Bank of Nigeria (CBN).

However, his return has been a blessing in disguise for shareholders of FBN Holding, as their investment value rose by 19.06% as Otudeko mopped up shares of the firm last week. They pocket N116.65 billion amid Otudeko’s market activity.

The share of the firm is one of the stocks to watch this week, as other majority shareholders unite against Otudeko, in a bid to prevent his takeover of the firm.

With the ongoing drama between Otudeko and other majority shareholders, investors should trade FBN Holding’s shares with caution.

Conoil

Conoil has been accused by one of its contractors, Eastline Energy Resources Limited, amid a $774,789 debt the former is allegedly owing the latter.

READ ALSO:Conoil leads gainers, Unity Bank tops losers in Nigerian stock market

Eastline Energy alleged that aside Conoil being a serial debtor, it is also a corporate fraud and also has a felon as a director in the company.

The contractor said Conoil is owing also Total E&P Nigeria, Halliburton, Depthwize and Shelf Drilling a total of $135 million, excluding Eastline’s debt.

The accusation was publicly revealed last week Thursday, but the President’s Chief of Staff, Femi Gbajabiamila, the Nigerian National Petroleum Company (NNPC) Limited and Conoil workers were informed in a letter dated June 14.

So, it’s left to see how the capital market reacts this week to the allegation and significant debt Conoil is owing its contractors, as $135 million debt will weigh heavily on the company’s balance sheet.

Note that a day after the report emerged, Conoil’s share closed trading flat at N102.3 kobo, same price it settled at on Thursday.

Ikeja Hotel

Ikeja Hotel went from being one of the best performing shares two weeks ago to closing last week as one of the top decliners in the Nigerian stock market.

Hospitality investors holding Ikeja Hotel’s shares lost 21.05% of their investments value after five days of trading, as demand for the firm slumps.

The loss was driven by a fall in Ikeja Hotel’s share value, which closed trading at N3.15 kobo last week Friday, depreciating from N3.99 kobo.

This indicates profit-takers ransacked Ikeja Hotel’s gains two weeks ago, pushing the firm into the bears’ territory.

So, investors need to trade with caution, as the equity could extend its stay in the bears territory or enter the bulls’ zone.

Join the conversation

Opinions

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.

Donate Now