As the Nigerian stock market embarks on another week of trading activities, three prominent companies have garnered attention as stocks to watch this week.
Nigeria’s equity market is abuzz this week as investors closely monitor Oando, PZ Cussons, and Chellarams due to significant operational and stock market activities.
Stocks to Watch this week.
Oando Faces Obstacles in Agip Acquisition
Oando’s ambitious plan to acquire the Nigerian Agip Oil Company (NAOC) from Italian oil and gas giant, Eni, has encountered hurdles. The Nigerian National Petroleum Company (NNPC) Limited has expressed concerns about the deal, citing Agip’s failure to adhere to joint venture contractual agreements. Further complicating matters, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have threatened to withdraw their services over the sale.
While Oando’s shares experienced a surge, increasing shareholders’ investment value by 38.74 percent, the uncertainties arising from union pushbacks and legal implications raise caution flags for equity investors as trading resumes this week.
PZ Cussons Nigeria’s Buyout Buzz
PZ Cussons Nigeria emerged as one of the top 10 gainers in the stock market last week following reports of a buyout by its UK-based parent company. This news triggered increased demand for PZ Cussons Nigeria’s shares, resulting in a 14.29 percent growth in the investment value of its shareholders.
Investors are eagerly awaiting the offer of N21 per share from PZ Cussons Group in the UK for minority shareholders. While this offer is slightly above last week’s closing share price of N20, it’s essential to note that the week before, the share price was at N17.50. This increase benefits current shareholders but could also attract profit-taking activities, potentially affecting the share price. Uncertainty looms as the buyout offer awaits approval.
Chellarams’ Shareholders Face Losses
Chellarams shareholders experienced an 18.77 percent decline in their investment value last week as the firm’s share price fell by N0.67. This decline equates to a loss of N484.35 million, causing Chellarams’ market valuation to drop from N2.58 billion to N2.09 billion within five days.
With Chellarams’ share price at N2.90 from N3.57, prospective investors may see this as an opportunity to buy at a lower price. However, caution remains necessary as market dynamics could extend the bearish trend in Chellarams’ share movement.
Stocks to Watch Today: Sterling Financial, BUA Cement, others in Focus
Investors in Nigeria’s equity market should approach these stocks with vigilance and consider consulting financial advisors before making any investment decisions, especially in these times of uncertainty and change.
