Zenith Bank, MTN Nigeria, and Fidelity Bank among stocks to watch this week

MTN Nigeria, Fidelity Bank and Zenith Banks are some of the stocks to watch out for as the Nigerian stock market resumes for another trading session this week.

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.

MTN Nigeria

MTN Nigeria’s revenue is set to rise, as the Nigerian Communications Commission (NCC) has increased the International Termination Rate (ITR) from $0.045 to $0.10 (10 cents) per minute.

The y’ello network will earn more revenue on international calls terminating their network from outside the country, creating an opportunity for MTN to have enough retained earnings that could lead to the firm increasing shareholders’ dividends.

Read also: Nestle, MTN and Ellah Lakes make stocks to watch list this week

Recall that MTN Nigeria had raised dividends paid in H1 2022 to N174.29 billion, in contrast to the N120 billion reported in H1 last year. With its income from international calls hiked, MTN could be motivated to further raise dividends going into H2 this year, increasing the value of shareholders’ investment – this could sway investors towards MTN shares, and trigger a rise in demand.

Fidelity Bank

In a quest to improve its earnings, increase foreign clients’ list, and become a tier 1 bank in Nigeria, Fidelity Bank completed the takeover of Union Bank’s subsidiary in the United Kingdom last month.

The acquisition is meant to make Fidelity Bank competitive against its Nigerian market rivals that are pushing to serve Nigerians oversees and foreign investors, becoming a channel for African investment inflow from UK.

This will improve Fidelity Bank’s top and bottom line going forward, as well as provide a chance of raising dividends paid out of shareholders.

Zenith Bank

Zenith Bank chairman, Jim Ovia, sold over 8.03 million shares held in the lender through Quantum Zenith Securities on August 29, at a period the company’s share is depreciating.

The shares Ovia sold is worth over N176.78 million. This comes three months after the investment banker acquired one million shares in May 9, worth N24.35 million.

This means Ovia sold more shares than he bought as Zenith Bank’s share falls –14.52% year-to-date. Such move by a high-level executive in a company could influence further sell off among minority investors, as board members’ exchange floor activities are usually used as a map by other investors, so trading with caution this week is suggested.

Join the conversation

Opinions

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.

Donate Now