Seplat, Honeywell Flour and Unity Bank are Nigerian stocks to watch

The Nigerian stock market resumes another five days of trading after last week’s Democracy Day celebration reduced the trading days to four.

This week, Seplat, Honeywell Flour and Unity Bank should be the stocks on your watch list, for reasons explained below.

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.

Seplat

Seplat has resolved its disagreement with the Federal Government over the appointment of the company’s Chief Executive Officer, Roger Brown.

The company has been distracted from its core oil business due to lawsuits from the government and some stakeholders of the firm over the leadership of Brown, and this could impact the revenue drive of Seplat.

Part of its challenges included the seizure of working and visa permits of Brown, which forced the CEO to leave Nigeria and discharge his duties from the United Kingdom.

However, Brown has been permitted to return to Nigeria to continue in his capacity as the CEO of Seplat, although, the company still faces court case from the aggrieved stakeholders.

Amid these court cases and permits seizure, Seplat’s share fell by 9.43% from N1,325 on March 2, to N1,200 as of June 13, indicating dwelling interests in Seplat amongst equity investors.

However, following reports that FG and the firm have settled, the company’s share rose by 10% to N1320 on June 14, 2023 – so Seplat is one of the stocks to watch this week, as the company gets its house in order.

READ ALSO:Seplat, Ecobank and Ardova are stocks to watch this week

Honeywell Flour

Last week was a terrible outing for shareholders of Honeywell Flour, as they lost 7.14% of their investment in the company.

In monetary value, Honeywell Flour shareholders lost N1.98 billion due to lack of interest in the company amongst equity investors in the stock market.

Also, it depreciated the market valuation of Honeywell Flour from N27.75 billion to N25.77 billion within four days of trading.

With the company’s struggle to attract investors, selloffs dragged down Honeywell’s share to N3.25 kobo from N3.50 kobo last week, so as trading resumes this week, traders are advised to trade with caution.

Unity Bank

Unity Bank shareholders gained N3.50 billion after four days of trading in the Nigerian stock exchange last week, as the firm was one of the most sought-after equities.

This means investors holding Unity Bank shares recorded a 41.67% rise in their investments, with the company’s market capitalisation rising to N11.92 billion from N8.41 billion.

The 41.67% increase made Unity Bank the second-best gainer in the Nigerian bourse last week, as high demands for its shares pushed the price to N1.02 from N0.72 kobo.

Unity Bank will start this week from the table of the best gainers due to its performance in the stock market last week, however, investors need to be cautious during trading, as profit-takers could cash out to milk last week’s gain.

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