It’s another week at the Nigerian Stock Exchange and as usual loads of deals will be made. Following last week’s bullish run what do we think wild happen this week? These are the stocks to watch this week.
Forte Oil – This stock made our “stocks to watch” list last week. It closed the past week as the stock that gained the most and there is no betting against it repeating that feat. Forte Oil may announce results this week and any increase in profitability is sure to push the share price Northwards. A friend thinks this stock sill hit N400 by the end of the year. I wouldn’t bet on that though.
Transcorp – I had thought this was going to be a N6 stock at the end of last week. It fell shy by about 20 Kobo. I expected it to make another statement this week. Transcorp shares are one of the most traded stocks so based on investor appetite the share price will surely not be stagnant. Many also await their result, particularly the impact of Ugheli Power plant on their bottom line.
Insurance Stocks – Insurance companies have released a flurry of results in the past month. The results have been quite good in my opinion. I know some posted slight drops in profitability year on year but you can’t help but look at the increase in underwriting profits. I feel soon investors will start to take notice of the underlying values in these companies rather than look at dividends yields.
Ashaka Cement – The Wapco Lafarge deal was approved last week by its shareholders. One of the priced companies joining the merger is Ashaka Cement. The share price was 5% higher at close of trading Friday and has risen 23% year to date. The stock has largely underperformed considering its potentials however, this merger may just impact positively on its share price.
Oando – The company announced a debt conversion last week as it moved to consolidate its ownership of its Canadian based subsidiary. The share price did not do so well last week having closed at about N28. Trading should resume again this week in anticipation of its results which is yet to be released more than half way into the year. Will it cross N30 this week again?