Africa Prudential Plc – The company announced it was proposing a dividend of 35kobo per share. This announcement saw its share price spike to about N3.5 last week before loosing steam and closing the week at N3.1. They close their register on Wednesday leaving Monday and Tuesday as the only days we can see an upside before the share price gets marked down.
United Capital – The company proposed dividend of 20kobo with the share price gaining 12% during the week. They close their register on the 23rd so we expect to see a little price volatility during the week. United Capital closed at N1.7 last week.
UBA – We expect this bank to announce its results next week, however the share price will continue to be volatile as investors position themselves for a robust dividend announcement. We don’t feel inclined to buy this stock at the moment as we feel there is limited upside until after the dividend announcement.
FBNH – This is another bank that we expect to hear something from next week. According to Bloomberg their next coirporate action will be around 30th of March which will be days after the election. The share price has witnessed an upswing lately with the share price losing 3.5% week to date to close at N8.5. Our take is that the share price will remain under N9 till results are announced. We also feel there is downside for the stock to fall below N8 by the end of this week.
Transcorp – The group has also seen major price volatility in recent weeks as investors ride its volatility for profiteering. We believe an announcement is imminent this week that will affect the share price of the stock. It closed last week at 2.5 gaining 8%. Transcorp we feel will continue to trade at or below N3 till any major corporate action is announced.
Caverton – This stock listed at N9 early last year but has lost 39% in the last 6 months and closed at N2.98 last week. It has also gained 1% in the last One Month, suggesting a price reversal. We feel their results in our view will be negatively affected by the slide in oil prices as most of their customers cut back on services. However, at this current price levels , there is room for an upside if one decide to hold till later in the year.
Mobil – We noticed Mobil has oscilated between N149 and N157 in the last few weeks as investors ride on its limited trading volume. We expect corporate action next week and being a resistant stock, portfolio managers will be looking at increasing their stake here at this prices. It will be interesting to see if this stock closes above N160 or below N150 this week.
Julius Berger – We observed volatile movements here last week especially an unusual trade that crossed sometimes last week. Corporate action is also anticipated this week so we expect the price to continue to oscillate between N41 and N47.
Note: The writer(s) owns shares in some of these companies and may sell some of the shares within the next one month and may hold some for much longer.
