October 10,2022

STOCKS TO WATCH: Dangote Cement, GTCO, Airtel, MTN Nigeria make list

Dangote Cement, Guaranty Trust Holding Company (GTCO), Airtel and MTN Nigeria made it into the stocks to watch list this week, as the Nigerian stock exchange resumes for four days trading due to the Eid-ul-Mawlid public holiday on Monday, October 10.

Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.

Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.

Dangote Cement

Dangote Cement faces possibility of a decline in its production level, as the Kogi State government shutdown its factory in Obajana, an area of the state, until further notice.

The factory was shut down over accusations of unpaid tax and ownership stake in the company. The shutdown will have an impact on the earnings of the company, considering production has been halted.

This comes at a time Aliko Dangote’s company is losing market share to rivals, BUA Cement, owned by Abdulsamad Rabiu, and Lafarge Cement, according to an industry report in H1 2022 by Ripples Nigeria

GTCO

Shareholders of Guaranty Trust Holdings Company (GTCO) lost -4.86% of their investment last week, following low demands for the creditors’ shares among investors.

This resulted to N44.14 billion loss in the total investment of shareholders, and also led to the value of GTCO falling in the capital market from N544.47 billion to N500.33 billion.

It was noted that the sell off was on the back of report by Ripples Nigeria that hackers attacked accounts of GTCO customers, stealing over N1.40 million. Investors have been reacting negatively towards the firm in the capital market.

MTN Nigeria/Airtel Africa

Nigerian telecommunication companies have increased prices for their internet data services by about 10 per cent. This will increase the revenue of Airtel Nigeria and MTN Nigeria.

Already, data is the fastest growing revenue source for MTN Nigeria and Airtel, with calls and SMS coming next. The hike in data charge will further increase the earnings from data, and enable the company share its improved profit with shareholders through dividends in the longrun