Stocks to watch this week comprises stocks that were the best and worst performing in the prior week, those that released results or had corporate actions after trading hours, or were in the news for one reason or the other.
Stocks to watch is not a Buy/Sell/Hold recommendation
Diamond Bank Plc
Diamond Bank Plc tops our watchlist by virtue of being the best performing stock in the prior week. The stock appreciated by 20% to close at N1.44 on the back of reports that the bank would be having new key investors.
The bank issued a statement debunking the reports, with erstwhile Chairman, Oluseyi Bickersteth, denying that he had resigned. He was of the opinion that the bank would consider recapitalisation through a rights issue or capital injection from new investors.
The stock could either continue the decline from Friday or appreciate, depending on the information available.
Seplat Petroleum Development Company Plc
Seplat Petroleum has a spot on our watchlist due to the planned release of its Q3 2018 results on Tuesday October 30, 2018. The company had disclosed this in a notice released last week. Investors could decide to take up positions in the stock, depending on the results released.
May and Baker Plc
Last Friday, May and Baker Plc held a facts behind the rights issue session at the Nigerian Stock Exchange (NSE). The stock could witness significant velocity in trades as investors may sell down, due to the dilutive effects of the planned rights.
McNichols Plc has a spot on our watchlist by virtue of being the worst performing stock last week. The stock shed 30.51% last week, and could decline further in coming weeks.
Unity Bank Plc
Unity Bank has a spot on our watchlist by virtue of being the only listed mainstream commercial bank that is yet to release its results for the financial year ended December 2017. This is even more pertinent at a period when most financial institutions have either released 3rd quarter 2018 results or are about to do so.