Threat to investments, sell offs make Union Bank, BUA Cement, PZ Cussons stocks to watch this week

With the earnings season upon us, investors are getting a glimpse of what their investment could become in future, and for some, its more growth or more losses.

The combination of earnings, operational decisions and economic environment are expected to weigh on capital market’s confidence towards companies; such as Union Bank, BUA Cement, PZ Cussons, amongst others, as they go on with their trading activities.

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.

Union Bank

The Nigerian lender closed last week as one of the best gainers in the capital market, after the company reported earnings growth of 12.7%, alongside a 12.5% in profit after tax for H1 2022.

Shareholders of Union Bank saw their investment appreciate by 7.84% after five days of trading last week, which was the period of its financial disclosure, as the earnings growth drove positive sentiments among investors.

Read also: Seplat, Academy Press and Fidson are stocks to watch this week

This triggered high demands for Union Bank stocks, causing the share to rise in value by N0.40kobo, closing the week with N5.50kobo, above the N5.10kobo it started the week with. It therefore signals the equity among sound stocks going into this week.

BUA Cement

While BUA Cement had reported its revenue grew by 51.7% in Q2 2022, the growth was overshadowed by the 47.3% rise in cost of sales to the market.

The company spent more than the N91.05 billion profit it recorded in Q2 on producing its products, as expenses grew to N97.5 billion, surpassing the N66.15 billion disbursed for the same purpose in Q2 2021.

Rise in cost of sales left BUA without profit during the period, threatening the projected value shareholders expect on their investment in the cement manufacturer in longterm, as it forces the company to increase debt, and increases debt financing cost, considering the US has hiked interest rate.

PZ Cussons

Investors holding PZ Cussons stocks lost -18.27% of their investment after five days of trading last week, resulting to the equity ending the session as the biggest loser.

And it will be going into this week on the back of last week’s sell off, creating fear among investors of further stock dump, which will pile up shareholders losses – so investors are advised to trade cautiously as the session resumes.

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