Major Stocks To Watch-out For This Week

Investors Lose N672bn To Selloffs In Wema Bank, BUA Cement, Others

Being a new week for investors, BrandSpur Nigeria has obtained major stock to watch-out for as the Nigeria bourse resumes trading.

According to Ripples Nigeria, MTN Nigeria, Unity Bank and Wema Bank are the stocks to watch this week.

While we advise you go the extra mile  by consulting an expert, here are the major stock to watch-out for this.

Unity Bank

Unity Bank closed last week’s trading among the top 10 losers in the stock market after interest in the financial institution’s shares dropped among the capital market investors.

This resulted in Unity Bank’s shareholders losing 9.79 per cent of their investments in the commercial bank, representing a loss of N1.63 billion within one week.

Unity Bank’s market capitalisation also depreciated to N15.07 billion from N16.71 billion, as the firm’s share value falls to N1.29 kobo on the back of investors’ apathy, from N1.43 kobo the share was worth two weeks ago.

With Unity Bank ending last week’s trading as the fourth worst-performing share, investors should trade the lender’s share with caution, as the capital market resumes for another session.

Wema Bank

Shareholders of Wema Bank saw the value of their investments in the financial institution rise by 7.76 per cent after five days of trading in the Nigerian stock market last week.

The share value of Wema Bank rose by N0.36 kobo between Monday to Friday, as hike in demand for the firm’s stock pushed the share price to N5, costing more than the N4.64 kobo it closed trading the upper week.

Wema Bank shares could ride on this momentum this week, further raising shareholders’ investment value, however, last week’s gain could also result in profit-taking among shareholders, so it’s important to trade with caution.

MTN Nigeria

MTN Nigeria has informed its shareholders that the network provider intends to borrow N100 billion through the Commercial Paper, which is an unsecured promissory note.

The network provider is approaching the capital market to raise the N100 billion after its net profit fell by 29.14 per cent year-on-year in the second half of 2023.

MTN Nigeria‘s net profit, which is used to reinvest in the company and pays shareholders dividends, dropped to N128.68 billion, against the N181.62 billion profit after tax of Q2 2022.

The telecommunications company said the loan is needed to fund short-term working capital and other operations that require financing to keep the company running.

Following the announcement last week Wednesday, the capital market reacted negatively to MTN Nigeria’s share, plunging the price of the firm’s share down by 1.78 per cent, from Wednesday’s N280 to close at N275 on Friday