Unity Bank, First Bank and FCMB among stocks to watch this week

Unity Bank, First Bank and FCMB are some of the stocks investors need to look out for this week, following the resumption of trading session in the Nigerian stock exchange.

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.

Unity Bank

Unity Bank made the stock to watch this week, following the company’s sanction for failing to submit its financial statements for the period ended December 31, 2021 and First Quarter 2022 before deadline.

The sanction will cost Unity Bank N4.2 million, which will affect the financial institution’s earnings, as well as scaring investors in the capital market, amid possibility of future occurrence, as the fine shows the management’s inability to adhere to regulations.

Read also: Debt burden, acquisitions make BOC Gases, Access Bank, Airtel Africa, Honeywell Flour stocks to watch this week

This will affect investors’ confidence in Unity Bank in the capital market, over fear that the management will be using their profits to pay penalty, which would impact their dividends or investment value.

First Bank

First Bank management continues to drag the company through regulatory queries and sanction in the last one year, and the latest is the N8.1 million fine from the Nigerian Exchange Limited for failing to release the firm’s Q1 2022 and FY 2021 financial statements.

The fine were separated, N2.6 million for not meeting deadline for Q1 financials and N5.5 million for the Full Year earnings report. This penalty will eat into the company’s turnover, as well as put the confidence of investors in the management to test as the capital market resumes for another session this week.

FCMB

Over N25.8 million was spent by directors at the financial institution to acquire more shares of First City Monument Bank (FCMB) last month. The acquisition was for 7.37 million shares, and was reported last week

This is expected to boost investors’ confidence in the capital market, considering directors presence in the bourse often act as a roadmap for minority investors during trading session. However, trade with caution as the market resumes, cause projection of share movements can’t be 100% accurate.

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