Stocks to watch this week comprises the top gainer and loser of the previous week, as well as stocks in the news for one reason or the other.
Stocks to watch is not a Buy/Sell/Hold recommendation.
Niger Insurance Plc
Niger Insurance has a spot on our watchlist by virtue of being the worst performing stock last week. The stock declined by 18.92%.
Insurance stocks have witnessed turbulent trading since the announcement of a new tier based capitalisation requirements by NAICOM. While its implementation has been suspended, many of the firms have commenced raising of capital.
The stock could witness more sell pressure in this trading week.
AIICO Insurance Plc
AIICO Insurance Plc has a spot on our watchlist by virtue of the company’s Extra Ordinary General Meeting (EGM) which held last Friday. Investors gave approval for a planned N5.28 billion private placement. Investors could either decide to take position in the stock in anticipation of an upward climb or exit the stock due to the potential dilutive effect.
LASACO Assurance Plc
LASACO Assurance Plc has a spot on our watchlist this week by virtue of an Extra Ordinary General Meeting (EGM) holding this week. The company intends obtaining shareholder approval to increase its authorised share capital by 40 billion shares.
Investors could decide to exit the stock, in view of the dilutive effect of a possible capital raise.