Another week of trading starts today, with over 100 companies jostling for the attention of investors at the Nigerian Stock Exchange, while trying to hold on to shareholders already in their grip.
Before joining the bandwagon of company of choice, it’s important to take note of their recent activities that could have possible short-term and longterm impact on their stock value.
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.
The companies on Ripples Nigeria Stocks Watchlist are Unilever, BUA Cement, Dangote Cement and Dangote Sugar.
Last week, the food manufacturer released its first quarter earnings for 2021. Unilever recorded operating loss of N165.41 million between January to March, putting pressure on the finances of the company.
Unilever recorded loss in its food and home & personal care products, while its earnings from exported products declined significantly. This could impact investors confidence this week as trading resumes in the capital market.
Abdulsamad Rabiu-owned cement company entered into a N112 billion debt last week following an issuance of bond at the capital market. The bond was issued to raise funds through the public.
This bond will reflect as debt on the balance sheet of BUA Cement, weakening the company’s financial strength. This could also affect the attitude of investors towards BUA Cement’s stock. So investors need to be more cautious.
The company remains in the shadow of price fixing allegation from competitor, BUA sugar. Although the Aliko Dangote-led company has continued to deny the accusation.
Despite distancing the company from the illegal activity, bad news travel fast and denial moves slow, hence the image battle Dangote Sugar is still fighting against. The off-capital market activity might determine the market’s reaction towards its shares this week.
Companies owned by Aliko Dangote seems to be battling image bantering from every corner as the Cement business was also accused of overcharging Nigerians compared to other African countries.
The company denied overcharging, stating that it has been selling at a lower price to Nigerians when compared to other markets across Africa. The company has been on the defense with the sugar arm, and as allegations continue to rise, the capital market might become wary of the Dangote Cement stock.