As the Nigerian stock exchange returned to its five days trading activities calendar this week, after the two-day Eid-ul-Fitr holiday last week, we bring you five stocks investors need to watch out for this week.
Our 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 this watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.
Oando Plc will open trading this week from the losers’ position, after shareholders of the oil & gas firm suffered 11.75% loss in their investment within three days of trading last week.
Sentiment around the company is currently bearish, creating a possibility of the sell off extending into this week, which might further drag the value of shareholders investment in the firm down – but it also opens the door for prospective investors looking to buy the dip.
Champion Brew, International Breweries, Nigerian Breweries
Investors are craving for brew shares in the Nigerian capital market going by last week’s trading activity, which saw investment in Champion Brew, Nigerian Breweries and International Breweries surge.
The demand for Champion share triggered an upswing of 32.54% in shareholders investment, while those of International Breweries skyrocketed 32.35%, and Nigerian Breweries share jumped 22.59%.
The capital market is currently bullish on the brews, with expectation of the share in the industry to appreciate in the longrun, but the upward movement could be reversed by short position holders, so trade with caution.
There was an insider trade disclosure last week in FCMB, with the founder, Michael Balogun, acquiring N24.5 million worth of stocks in the lender, while his investment company, Primrose, bought N49 million valued shares.
Aside from Balogun and Primrose, FCMB Trustees Limited FCMB ESOP and Bluechip Holdings Limited acquired shares worth N1.51 billion and N24.5 million respectively in the last week of April.
Such share purchase by these substantial shareholders often signal there’s a growth sentiment among majority shareholders in a company, which would in turn, trigger high demand for such firm’s share, leading to appreciation in shareholders investment in future.
However, investors still need to trade with caution, to avoid sudden sell off, as future growth in shares can sometimes be difficult to predict from a singular action.