stocks to watch

MTN Nigeria, Fidelity Bank, and Zenith Banks are among the stocks to watch as the Nigerian stock market resumes trading this week.

Ejes Gist NewsOnline Nigeria stocks watchlist is a list of stocks that are being monitored for potential trading or investing opportunities. An investor may generate a list of equities for investment purposes on the spur of the moment. But we’ve gone to the trouble of doing it based on specific parameters to save you the trouble.

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Please keep in mind that the Ejes Gist NewsOnline Nigeria Stocks Watchlist is not a buy, sell, or hold recommendation. Before making any investment decision, it is best to consult with your financial advisor.

MTN Nigeria Limited

The Nigerian Communications Commission (NCC) has increased the International Termination Rate (ITR) from $0.045 to $0.10 (10 cents) per minute, which will increase MTN Nigeria’s revenue.

The y’ello network will earn more revenue on international calls terminating on their network from outside the country, giving MTN the opportunity to have enough retained earnings to increase shareholder dividends.

Also read Stocks To Watch This Week, See full Details

Remember that MTN Nigeria increased dividends paid in H1 2022 to N174.29 billion, up from N120 billion in H1 last year. With its income from international calls increased, MTN may be motivated to increase dividends further in H2 this year, increasing the value of shareholders’ investment – this could sway investors towards MTN shares, causing demand to rise.

Fidelity Investments

Fidelity Bank completed the takeover of Union Bank’s subsidiary in the United Kingdom last month in order to improve its earnings, increase its foreign client list, and become a tier 1 bank in Nigeria.

The acquisition is intended to make Fidelity Bank more competitive in the Nigerian market, where competitors are vying to serve Nigerians abroad and foreign investors, as well as become a channel for African investment inflows from the UK.

This will improve Fidelity Bank’s top and bottom lines in the future, as well as provide an opportunity to increase dividends paid to shareholders.

Zenith Financial Group

On August 29, Zenith Bank chairman Jim Ovia sold over 8.03 million shares held in the lender through Quantum Zenith Securities, at a time when the company’s stock is declining.

Ovia sold shares worth over N176.78 million. This comes three months after the investment banker purchased one million shares for N24.35 million on May 9.

This means Ovia sold more shares than he purchased, as Zenith Bank’s stock is down -14.52% year to date. As board members’ exchange floor activities are usually used as a map by other investors, such a move by a high-level executive in a company could influence further sell-off among minority investors, so trading with caution this week is advised.

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