Otedola’s Geregu Power, GTCO, Dangote Cement make stocks to watch list

The stocks to watch this week are Geregu Power, Dangote Cement and Guaranty Trust Holding Company (GTCO).

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.

Geregu Power

Geregu Power shareholders closed the week with a loss of -9.01% in investment last week following report by Ripples Nigeria that the owner, Femi Otedola, tied his shares to First Bank loan.

READ ALSO:Dangote Group outlines history, agreements behind Obajana Cement Plant, as Kogi govt continues onslaught

Over N27.25 billion was wiped off their investment value within four days after return from Monday’s Public Holiday. As a result, Geregu’s market valuation fell to N275 billion, from N302.25 billion.

Ripples Nigeria had reported on Monday that Otedola tendered 80% of his Geregu shares as collateral for the company to obtain N9.28 billion from First Bank.

This means in the event of failing to meet the loan obligation, the lender could take over the firm. And a day (two days after publication) after the capital market resumed, the share of Geregu dropped in value by -9.01%, as investors interest in the firm’s stock declined.

Although the company is currently in a closed period, however, shareholders still need to trade with caution, considering the drop in demand last week.

Dangote Cement

One of the cement factories of the manufacturing company has been under lock in Kogi State for over a week, and it will impact the total production output of Dangote Cement.

This will result into revenue loss for the company for as long as the factory remain under lock, as disagreement with the Kogi State Government remain unresolved.

Both parties are currently in a faceoff over unpaid tax and ownership stake, as the state government is laying claim to an undisclosed share in Dangote Cement.

Although the company revealed last week that the government owns no share in the firm, but Dangote Cement’s topline for the fourth quarter remains under threat. This could also affect investors’ confidence in the firm’s share going forward.

GTCO

Guaranty Trust Holding Company (GTCO) failed to make the top five performing Nigerian bank list for the first half of 2022, according to Ripples Nigeria industry review.

GTCO’s market revenue share fell during the period from 8.11 per cent to 7.62 per cent. The financial institution’s market share by net profit also depreciated to 13.47 per cent, down from 15.77 per cent.

This reflects the poor performance of Guaranty Trust in the first and second quarter, when the company was placed 10th among 12 commercial banks ranked in both quarters.

As the company prepares to release its third quarter financial statements, the earnings results for previous quarters indicates shareholders should brace up for another slow growth that will further hold back GTCO from the top five performing bank in the second half of 2022.

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