Due to the Eid el-Fitr public holiday on Monday, this week’s trading on the Nigerian stock market will open on Tuesday.
Transnational Corporation (Transcorp), GTCO, and Union Bank are stocks to keep an eye on during trading sessions this week due to the influence of a new investor, regulatory crackdowns, poor investments, and the legal dispute that jeopardizes stability.
The stocks on the Ripples Nigeria stocks watchlist are being kept an eye on for potential trading or investment opportunities. A list of stocks can be informally created by an investor for investment objectives. However, we went to the trouble of doing it based on specific criteria in order to spare you the trouble.
Please take note that the Ripples Nigeria Stocks Watchlist does not constitute a recommendation to buy, sell, or hold. Prior to making any investing decisions, it is essential to speak with your financial advisor.
Transcorp Plc
As Femi Otedola joins the company’s majority stockholders, Transnational Corporation (Transcorp) Plc has become one of the most sought-after shares on the Nigerian stock market.
Following news that Otedola was purchasing firm shares, demand for the equity increased last week, resulting in a 44.97% boost for investors.
As a result, Transcorp Plc, whose stock price increased to N2.45 kobo per share from N1.69 kobo after four days of trade last week, was the equity with the best performance.
when a result, Transcorp will start this week’s stock trading on a high note. However, when the novelty of Otedola’s visit wears off, profit-takers may be able to capitalize on the bearish trend.
GTCO
A disastrous investment in Ghanaian securities caused the subsidiary of Guaranty Trust Holding Company (GTCO), GTBank, to lose 21% of the parent company’s net earnings.
In its investment in Ghanaian government assets, including Treasury bills, Eurobonds, local US bonds, and Cedis bonds, GTBank lost N35.55 billion.
The loss was recorded in 2022, the same year GTCO claimed an after-tax profit of N169.17 billion, a decrease from the N174.83 billion profit at the end of 2021.
This will have an impact on the company’s capital structure and limit its ability to increase dividend payments to shareholders.
The fact that GTCO also lost N128.6 million in 2022 due to a regulatory fine from the Central Bank of Nigeria (CBN) could have an impact on the capital market’s confidence in GTCO.
Failure to comply with a number of legal standards, such as the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) exams, resulted in the fine.
Union Bank
The financial health of the commercial bank, Union Bank, is under jeopardy from a N1.485 trillion lawsuit, Ripples Nigeria reported on Thursday.
Union Bank is contesting the judgment debt in the Supreme Court, despite the Federal High Court having already awarded the claimant N1.495 trillion against Union Bank.
This is troubling because the N1.495 trillion debt judgment represents 53.2% of the company’s total assets, which amount N2.79 trillion.
If the firm loses the case, it will put strain on its capital base and be unable to fulfill its obligation to shareholders, even though Union Bank anticipates a favorable decision.
When stock market trading returns this week for another four days of operations, it remains to be
seen how shareholders would respond to Union Bank.
