Unilever Nigeria, Seplat and Access Bank among stocks to watch this week
Unilever Nigeria, Seplat and Access Bank made it into the stocks to watch list this week due to various reasons that are not capital market related.
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.
Unilever Nigeria’s revenue sources will reduce in the future as the company is planning to exit the Home Care and Skin Cleansing market.
Although the company said discontinuation of the business segments will accelerate its growth and sustain profitability.
Recall that Unilever had also sold off its Tea business to Unilever Tea MSO Nigeria Limited, owned by UK firm, Unilever Group, in the first half of 2022
Unilever Nigeria said exiting the Home Care and Skin Cleansing market will reduce exposure to devaluation and currency liquidity.
It remains to be seen how the exits from these markets will affect the company’s earnings as it focuses on food products, as it will affect net profit or retained earnings, from which shareholders of Unilever Nigeria are paid dividends.
This makes Unilever Nigeria’s future growth prospects a major concern in the stock market, considering the brands it will no longer be selling, OMO, Sunlight and Lux are popular household products and key contributors to its revenue.
READ ALSO:Wema Bank, Seplat, Zenith Bank make stocks to watch list this week
Nothing seems to be going right with Seplat lately as it relates to the firm’s management which is involved in two court battles.
Seplat’s Chief Executive Officer, Roger Brown, has been sued over allegation of racism and mistreatment of Nigerians in the company.
Also, Seplat filed a lawsuit against its former chairman and co-founder, A.B.C Orjiako, for conducting business with the firm’s letterhead without authorisation from the board of directors.
The company’s attention is being split by the court distraction which might affect the capital market’s confidence in the board’s handling of operations.
Amid these litigations, Seplat’s board is also unable to complete the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil, failing to keep to its promise of improving shareholders’ investment through the acquisition.
With the report of the court battle between Seplat and its co-founder, who has also threatened lawsuit against persons in the board, emerging last week, the firm’s share movement will be one to watch this week, to see how the capital market reacts.
Shareholders of Access Bank have much to be excited about, as the company received the approval to complete the acquisition of African Banking Corporation in Zambia.
This comes after Access Bank suffered a setback in its plan to acquire Sidian Bank in Kenya, as both companies couldn’t agree on certain terms.
Access Bank has been acquiring banks across Africa to increase its bottom line and value of its assets, as it plans to improve shareholders’ investment through inorganic growth.
The multiple acquisitions are expected to boost the capital market’s confidence as regards Access Bank’s future growth prospects, as it will have access to more markets and increase its account holders as well as total deposits in its vault.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
A tale of Kwara public school where pupils learn under the tree without chalkboards
“You cannot make people learn. You can only provide the right conditions for learning to happen.” – Vince Gowmon But...
SPECIAL REPORT: Indiscriminate waste dumps, open defecation pose threat of epidemic in Kwara as govt slow to act
Forty three-year-old Bilikis Abdulrahman covered her pineapple fruit she is selling inside a white bucket container. This, she does to...
SPECIAL REPORT: Women displaced by conflict in North-Central Nigeria become farm helps to survive
Displaced women finding refuge in Abagena camp for Internally Displaced Persons (IDP) camp in Makurdi, Benue State have resorted to...
FEATURE: Kwara residents cry out for help as rainstorm devastates their homes
Phillip Moffitt, an American author, said: “the house is a home when it shelters the body and comforts the soul”,...
SPECIAL REPORT: Small businesses suffer, as govts fail to end sit-at-home in Nigeria’s South-East
It is a Thursday afternoon in December 2022 and the sun is scorching inside the popular Ogbete Market in Enugu...