This week’s stocks to watch is centred around the performance of First Bank, McNichols and International Breweries’ capital market performance in the past week, and how it is affecting their shareholders.
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.
Shareholders of First Bank are currently feeling the negative impact of Femi Otedola’s presence in the financial institution, having recorded another loss in their investment since the billionaire sold off part of his shares on June 6.
Last week, -5.8% of their investment was wiped off due to sell off on the exchange floor, bringing the loss to -13.7% in the last two weeks, as shareholders are losing confidence in the growth of the firm in the capital market.
Read also: Threat to shareholders’ dividend, others place Union Bank, UAC Nigeria, GTCO on stocks-to-watch list this week
First Bank’s share will open this week’s trading from the bears territory, and with no current incentive from the company to help shareholders see growth prospects, it’s unsure how long the bearish run will last.
The shareholders of the indigenous food and beverage producer suffered a -9.76% loss in their investment last week, as the management’s decision to offer bonus shares fail to prevent sell off among stakeholders.
On the exchange floor, demand for McNichols share slumped, while sell off soared, forcing the value of the firm’s stock to fall to N1.85kobo per share, from N2.05 it started the week with.
McNichols management had offered to issue a bonus share for every 23 shares to shareholders, with approval slated for July 28. But this has not encouraged the capital market to see a longterm growth in the firm, and its reflecting in the depreciating stock, which will open trading this week from the losers spot.
The sell off comes as the qualification date of June 30 for the previous share bonus of 6 shares for every 5 shares held by shareholders gets closer. This had resulted into a surge in the share, hence, shareholders engaging in profit-taking.
International Breweries will resume trading this week on the loser’s side after investors lost -14.97% of their investment in the brewer following four days of trading last week.
Sell off is hovering around International Breweries on the exchange floor, so investors need to trade with caution, considering shareholders have been taking out their funds from their company. Although, the dip opens the gate for prospective buyers to come in, but it’s unsure if the bears will halt their run after last week’s ride.
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Source: Ripples Nigeria.