Transcorp, First Bank and Fidelity Bank are stocks to watch this week
Transnational Corporation (Transcorp), First Bank and Fidelity Bank are stocks to watch this week following various activities on their shares in the Nigerian stock market.
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Transnational Corporation (Transcorp) share is red hot in the stock market following reports that Femi Otedola has acquired over five per cent stake in the firm.
The investment company is yet to confirm Otedola’s acquisition, but reports of his presence on the Transcorp exchange floor were enough to drive the equity up by 23.36 per cent.
Due to renew demands for Transcorp shares, the firm closed last week as the best gainers and will open this week from the position, however, the rise in share value also gives profit-takers a reason to sell off.
So, investors should trade with caution as the stock market resumes this week.
READ ALSO:Stock roundup: Investors trade N10.96bn shares, Transcorp heads gainers, CHI leads losers
While the reports of Femi Otedola’s activities in the stock market favoured Transcorp shareholders, it wasn’t the same for First Bank of Nigeria (FBN) Holdings.
FBN Holdings’ shareholders lost 6 per cent of their investments last week after the reports emerged, as the capital market reacted negatively to FBN after their largest investor bought shares in another company.
This put FBN shares among the losers last week. So, investors should trade with caution this week, considering the capital market’s confidence in FBN didn’t close high last week.
Fidelity Bank has sold a 10.4 per cent controlling stake to new investors after placing 3.03 billion shares up for sale in a private placement.
The shares cost the unnamed investors N13.9 billion. The capital received from the share sale will be disbursed into the firm’s operation.
Fidelity Bank offered the shares in exchange for capital after spending millions of Dollars to acquire Union Bank subsidiary in the United Kingdom.
The report on the acquisition came in on Friday, so it’s unsure how the capital market will react to the presence of new private investors this week.