Nigerian Breweries, Access Holdings and MTN Nigeria are stocks to watch out for this week, as the Nigerian bourse resumes for another trading 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.
Nigerian Breweries
Nigerian Breweries has turned to credit to keep its business running amid a financial downturn in the alcoholic and non-alcoholic company.
The brewer recorded N10.71 billion loss in the first three months of 2023, with Nigerian Breweries’ current liabilities put at N458.18 billion, which is double the firm’s current assets of N186.04 billion, as of March 2023.
Amid this financial burden, Nigerian Breweries approached the capital market to borrow N25 billion by issuing Commercial Paper.
This would further raise the firm’s liabilities, weighing on Nigerian Breweries’ retained earnings and affect investors’ confidence at a period the stock market is distancing itself from the company’s stock, which has resulted in its share fall by -18 per cent – so, investors need to trade with caution this week.
Access Bank
Access Bank Group Managing Director and Chief Executive Officer of Access Holdings, Herbert Wigwe, continues to show his confidence in the firm’s growth by acquiring more shares in the financial institution.
Wigwe bought 75 million shares last week Friday at the cost of N843.75 million. The week before, on April 28, he acquired 1.13 billion shares valued at N11.35 billion.
Acquisition or sale of shares by top executives like Wigwe is a signal for other shareholders of a publicly listed company to either buy or sell shares.
So Wigwe’s participation in the stock market could boost investors’ confidence, considering Access Holdings’ share has been on the rise since he first acquired shares in late April.
Access Holdings’ share has appreciated by -10.83 per cent since April 28, indicating equity investors have renewed their interest in the firm.
MTN Nigeria
MTN Nigeria risks losing N1.48 billion to lawsuits, with one of the legal cases being a N200 million judgement debt from a lawsuit filed due to the alleged electrocution of a 12-year-old girl, Hamsatu Abdullahi, in Yobe State.
The company is also facing lawsuits from Benue State Internal Revenue Services and Corporate Communications Ltd.
This will impact the firm’s earnings should it lose the cases, although MTN Nigeria said no material loss is expected to arise from these claims and litigations.
Following the report of the litigation on May 2 by Ripples Nigeria, the firm’s share fell by -0.47 per cent in the stock market and closed the week on the losers’ table.
So, investors need to trade with caution, as the firm will open this week from the losers’ position, and it’s unsure if the loss will spill into this week.
[RipplesNigeria]