STOCKS-TO-WATCH: Telcos shares in distress, Otedola places uncertainty on Ardova’s future

Airtel Nigeria, MTN Nigeria and Ardova are some of the shares that stock investors need to have on their radar going into this week’s trading session.

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.

Airtel Africa

Airtel Africa ended up among the best losers for last week after its stock entered the bears territory last week, causing shareholders to lose -27.1 per cent of their investment.

This represents a loss of N1.80 trillion in shareholders’ investment. Share of Airtel Africa had depreciated as it struggled to lure investors to acquire shares.

While the decline results into a loss for shareholders, it also open the door for prospective investors to buy Airtel’s share at a lower price before the bulls come for it.

Nevertheless, trading with caution is suggested, as the bears could continue their riot this week, considering the -27.1 per cent drop in share price could push shareholders into extending the sell off.

READ ALSO:Femi Otedola sets to take over Ardova Oil as Zenon wins case against majority investor

MTN Nigeria

Last week was a bad period for telecommunications companies in the capital market, as MTN Nigeria also failed to grow its shareholders’ investment.

Rather, shareholders lost N103.80 billion worth of investment during last week’s five days trading, after investors in the stock market opted for non-telco shares.

This shows a pattern among stock investors, indicating there is currently low interest or demand for telco shares at a period cost of living is rising, which might affect the purchasing power of MTN and Airtel subscribers.

Note that the loss had also happened same week the Federal Government asked MTN, Airtel and other market rivals to reverse the 10% placed on data.

So going into the new week, investors need to trade with caution, as the capital market’s reaction to the directive is unpredictable.

Ardova

Ardova Plc management are currently distracted, jostling between the everyday operation of the firm and the court battle its largest shareholder, Prudent Energy, is involve in.

The management have had to continue releasing statements after statements due to the court battle between its majority investor’s firm, Ignite Investment Limited and Zenon Petroleum and Gas Limited.

Both Ignite Investment Limited, Prudent Energy, and Zenon Petroleum, owned by Femi Otedola, are in court over breach of contract and balance from the sale of Forte Oil (now Ardova) from the latter to the former.

Otedola’s company has won an arbitration court case against Ignite Investment, and it is currently seeking a court order to wind up Prudent Energy to take over its shares in Ardova.

This is raising uncertainty as regards Ardova’s future, so investors in the capital market need to trade with caution, as Otedola taking over Prudent’s shares could lead to new management.

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