Stocks to watch

Stocks to watch comprises of equities that we will keep an eye on in the coming week. Stocks make the list by virtue of being top gainers or losers, as well as having any corporate actions or controversy surrounding them.

* There will be no trading on the Nigerian Stock Exchange (NSE) today due to the Eid El Fitr holiday for today. Trading resumes tomorrow. 

Japaul Oil and Maritime Services Plc

Japaul Oil and Maritime Services was the biggest weekly gainer for the second consecutive time. The stock has traded in a volatile manner in the past few months, rising sharply on the news of a possible investment by private equity firm, Milost Global, then falling after the agreement was terminated.

United Capital Plc

United Capital traded large volumes last week and was largely in the news due to the appointment of Peter Ashade as the new Group Chief Executive Officer (GCEO). He replaces Toyin F. Sanni, who will be stepping down at the end of the month.

Word on the street, last week, was that a shareholder was moving shares from one Special Purpose Vehicle (SPV) to another. Nairametrics will keep watch on the stock.

Africa Prudential Plc

Africa Prudential Plc was originally incorporated as UBA Registrars Limited in March, 2006. The Company subsequently changed its name to Africa Prudential Registrars Plc in August, 2011, and was listed on the NSE in January, 2013.

The company changed its name to Africa Prudential Plc, following a special resolution passed by the members in a General Meeting on March 28, 2017, to enhance its market competitiveness and diversified business interests.

Africa Prudential Plc (formerly Africa Prudential Registrars Plc) carries on the business of registrar and investor relation service in accordance with its Memorandum and Articles of Association.

Africa Prudential is on our watchlist by virtue of an impending announcement of a new Managing Director. Current MD Peter Ashade will be taking over from Toyin Sanni as GCEO of United Capital. The stock also traded significant volumes last week.

Mutual Benefits Assurance Plc

Mutual Benefits Assurance Plc was incorporated on April 18, 1995, under the name, Mutual Benefits Assurance Company Limited. The Company was converted and re-registered as a Public Limited Liability Company on May 24, 2001. On May 28, 2002, the company became listed on the NSE.

Mutual Benefits has had a resurgence in trading volumes since the company ended a dividend drought that lasted nearly a decade. It is on our watchlist this week by virtue of being the biggest loser last week.

Wapic Insurance Plc

Wapic Insurance was incorporated on March 14, 1958, as a private limited liability company under the name, West African Provincial Insurance Company Limited and was converted to a public limited liability company on August 31, 1990, when the Company’s shares were listed on the NSE.

The company became a Subsidiary of Access Bank Plc in 2011.

Wapic Insurance is currently trading at N0.49 below its N0.50 psychological floor. If market sentiments are negative next week, it could dip further.

Redstar Express Plc

Redstar Express Plc was incorporated as a private limited liability company on July 10, 1992, and commenced business on October 12, 1992.

The company became a public company on July, 2007, and subsequently listed its shares on the NSE on November 14, 2007.

The company is principally engaged in the provision of courier services, mailroom management services, outsourcing, freight services, logistics, warehousing and general haulage.

A board meeting scheduled to take place this week has been shifted to June 26, 2018. Redstar has the month of March as its financial year-end. As such, the stock could witness some rally in anticipation of the release of its audited results.

Cement Company of Northern Nigeria (CCNN)

Cement Company of Northern Nigeria (CCNN) also known as Sokoto Cement will be closing its register this week from Tuesday, June 19, 2018, to Friday, June 22, 2018.  The stock could witness significant volume, prior to and after the closure date, as some investors position and others will exit.

Chellarams Plc

Chellarams Plc was incorporated on August 13, 1947 as a Private Limited Liability Company. The Company became a Public Limited Liability Company and was admitted to the official list of the NSE on November 29,1974.

The company’s trading operations are segmented into two separate divisions: one for industrial raw materials and the other for consumer products.

The current portfolio of products within these two divisions comprising industrial chemicals, machinery, ingredients for food manufacturers, frozen foods, bicycles and electronics.

Chellarams Plc last week issued a notice to the NSE, stating that its audited results for the 2017 financial year had been approved by its board of directors. This means that the results could be released anytime from now. The firm also disclosed that it would not be paying any dividend. This could be an indication in its diversification efforts are yet to yield fruit. 

While Chellarams is barely traded by virtue of being on the ASEM (Alternative Securities Market), the news could lead to a drop in its share price.

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