Stocks to watch this week comprises the top gainers and losers of the prior week, as well as companies that had corporate actions after trading hours or expected this week.
Stocks to watch is not a Buy/Sell/Hold list.
Diamond Bank and Access Bank
The two banks occupy the top spot jointly for the second week running. Diamond Bank was the best performing stock last week, appreciating by 57.89% after news of its merger plans with Access Bank was confirmed.
Access Bank is offering Diamond bank shareholders, a combination of cash and stock worth N3.13. The stock could witness a sustained uptick in this week’s trading, as it moves towards that price point.
Access Bank was one of the top ten losers for the week as investors may have reacted negatively to the impending dilution that would occur from the new shares being offered to Diamond Bank shareholders, and a rights issue billed for next year.
As the week goes by, more information about the merger should emerge.
Union Bank Plc
Union Bank has a spot on our watchlist by virtue of news that broke on Friday following a statement by the Economic and Financial Crimes Commission (EFCC) that it had intercepted $2.8 million belonging to the bank at the Akanu Ibiam International Airport, Enugu.
While the bank has responded on Twitter, it is yet to put out an official statement. The EFCC is yet to issue an update.
Ikeja Hotels Plc
Ikeja Hotels Plc has a spot on our watchlist by virtue of being the worst performing stock last week. The stock shed 9.63% this week and could decline further, depending on market sentiments.
Newrest ASL has a spot on our watchlist by virtue of the company’s announcement of its plans to delist from the Nigerian Stock Exchange. The company’s stock price could witness a rally, as it may have to buy out the holdings of minority investors to delist.