Stocks to watch comprises the top gainers and losers of the prior week, as well as those that released results after trading hours or have corporate actions.
Stocks to watch is not a Buy/Sell/Hold recommendation.
This week’s trading session would be abridged due to the New Year holidays on the 1st of January, 2019.
Vitafoam Plc
Vitafoam Nigeria Plc tops our watchlist this week by virtue of the company releasing its audited full year results for the twelve months ended September 30, 2018, after trading hours.
The stock could witness increased volumes as investors take positions in expectation of a dividend declaration. The company paid a N0.15 dividend last year and could up it, in view of the N0.57 in earnings it made in the last financial year.
Diamond Bank Plc
Diamond Bank has had a recurrent spot on our watchlist in the last few weeks since its merger plans with Access Bank were confirmed.
The stock has been on an upward rally in the last few weeks, and was the best performing stock last week, up 32%. A further upward movement should be expected, as speculators take positions in the stock till it hits the N3.13 in value, which Access Bank will be offering shareholders.
Access Bank Plc
Access Bank has a spot on our watchlist by virtue of being one of the top 10 losers for last week. Investors have shown apathy towards the stock, in view of the potential dilution arising from the 19.9 billion shares that would be given to Diamond Bank shareholders.
In addition, a N75 billion rights issue could take place in the first half of next year, if shareholders give approval at an Extraordinary General Meeting (EGM) scheduled for February 2019.
Access Bank closed at a new year low of N6.80 in Friday’s trading and could dip further in the coming days.
UAC of Nigeria Plc
UAC of Nigeria Plc takes the last spot on our watchlist by virtue of being the worst performing stock last week. The stock shed 11.36% to close at N9.75. Depending on market sentiments in the first few trading days of the new year, the stock could decline further or rise.
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