The Nigerian Stock market faces up to a very tough week as two crucial meetings will determine the direction of the market as we approach the last month of the year. Whilst there are so many stocks on my watch list, the following stocks will be affected by whatever happens this week.
Seplat – The local Oil producing company has lost over 30% of its value as the fall in oil prices continue to affects its valuation in the market. The stock closed last week at N426 and opened higher this week at N430. The OPEC meeting scheduled for Thursday will have a huge impact on the share price by Friday. The share price as it stands still looks attractive at N430 and could even be cheaper if the market reacts negatively to the outcome of the OPEC Meeting.
Oando – Oando released its 2014 9 months results last week and also announced plans for a 1 for 4 rights issue at N22. The share price closed last week at N20.39 and has dropped to as low as N16.9 this month. The company will love the share price to rise above N22 to ensure the valuation is attractive for intending purchasers of the rights. From recent events, these companies actually depend on institutional investors to pick up this rights issue and may not totally rely on retail investors like you and I. If you are a retail investors looking to pick of this rights and do not qualify, I suggest you scoop up the shares on the floor of the exchange at a discount to the rights issue price.
FBNH – This stock hovered between N9 and N10 last week and looked like it could break its floor and hit N8. It closed at N9.32 at the end of last week stubbornly hanging on. Is this going to be the week where FBNH drops below N9? It’s hard to tell but I suppose the MPC meeting will have a lot to do with that. FBNH is a highly liquid stocks and is always one of the first out of the blocks to dumped or bought depending on market reactions/perceptions.
Dangote Cement – This is basically the bell weather of the Nigerian stock exchange. In fact, where it not for Dangote Cement, the market may have remained heavily bearish. This is because Dangote Cement’s market capitalization is about 25% of the total NSE market cap. So if Dangote Cement closing 10% higher, it is likely the NSE will post a gain. Dangote Cement is trading at N195 Monday morning, having closed the week at N189. It could cross N200 again before retreating back as it has done over the past two weeks.