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Stocks-to-watch: Short investors, scandal, regulator threaten investments in MTN, Seplat, RT Briscoe

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Stocks-to-watch: Short investors, scandal, regulator threatens investments in MTN, Seplat, RT Briscoe

RT Briscoe, Seplat and MTN Nigeria made the list of stocks to watch this week, as short investors, scandal and regulator frustration threaten shareholders investment.

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.

RT Briscoe

The general attitude of investors towards RT Briscoe has been bearish, with short investors engaging in profit-taking following a bull run. They are selling off shares to take out their funds in the company as they envisage the firm’s stock will underperform.

RT Briscoe’s stock is already underperforming due to exit of the investors holding short positions, dragging shareholders investment down by 32.98% last week.

The sell off is expected to continue in the wake of the price bubble RT Briscoe share experienced in February 2022, so the capital market needs to trade with caution.

Seplat

Investors renewed their interest in Seplat’s share in the Nigerian bourse last week, following reports that the company is in the process of expanding its business portfolio and revenue base.

Seplat plans to do this through the acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil. This disclosure saw investors pump their funds into its share, causing shareholders investment to rise by 20.25%.

Read also: Why Ellah Lakes, Flour Mills RT Briscoe are stocks-to-watch this week

However, with reports that the regulator and ExxonMobil co-investor, NNPC Limited, is frustrating the deal, you need to trade with caution as the capital market is likely to engage in profit-taking amid fears that the acquisition will fall through.

MTN Nigeria

MTN Nigeria was dragged into a scandal last week, that resulted into the resignation of the telecommunications company’s head of Sales and Distribution Officer, Adekunle Adebiyi.

Adebiyi was accused of sexual harassment and intimidation, with MTN Nigeria CEO, Karl Toriola, accused of covering his activities. It’s unsure the extent of the scandal, or if MTN would face a class-action lawsuit, which might result into financial settlements.

With the end yet to be determined, its also unsure how the capital market will react to the scandal, making MTN Nigeria share one of the stock to watch out for in the coming days, considering its share in South Africa’s stock exchange was down by -5.42 percent on Friday.

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