Nigerian banks, telcos, Berger Paints on stocks’ watch list

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This week, the stocks of Nigerian banks, telecommunications companies and Berger Paints are on the watch list due to operational and stock market activities last week.

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.

GTBank, Unity Bank, Fidelity Bank and Zenith Bank

Four publicly traded Nigerian banks are under investigation for data abuse, according to the Nigeria Data Protection Commission (NDPC).

The data protection commission disclosed that the banks involved are Guaranty Trust Bank (GTBank), Unity Bank, Fidelity Bank as well as Zenith Bank.

This could cost the commercial banks one per cent of their revenue should the NDPC find them guilty of customer data abuse.

Ripples Nigeria reported the investigation on Friday, so it’s left to see how investors in the stock market would react to the probe and the possibility of the banks losing part of their turnover, which will affect the companies balance sheets.

Until the investigation, which doesn’t have a publicly set time, is complete, the disclosure of the probe could affect the capital market’s confidence towards the banks, so trade with caution.

MTN and Airtel

The subscribers of MTN Nigeria and Airtel are likely to see an increase in the cost of services provided by telecommunications companies.

According to the association MTN and Airtel belong, the Association of Licensed Telecoms Operators of Nigeria (ALTON), the telcos have begun discussions with the Nigerian Communications Commission (NCC) on plans to review their rates.

MTN, Airtel and other network providers are taking steps to protect their revenue from declining due to the increase in the cost of operation driven by a hike in fuel prices and the expected increase in electricity tariff.

These steps include an increase in the prices of data and a hike in call tariffs. While this will ensure the industry remains sustainable, it will also affect their subscribers’ purchasing power.

So, in the end, the balance sheet of the company will be affected, but to what extent is the question? It is uncertain which side the investors will swing to; the bulls’ or the bears’ territory after the increase in prices and hike in call tariff.

Berger Paints

Berger Paints investors didn’t have much to celebrate last week after they lost 4.31 per cent of their investment in the company.

This represents N130.42 million loss in shareholders’ total investment in the company, as demand for Berger Paints’ shares plummeted.

Amid investors’ lack of interest, Berger Paints’ market valuation also depreciated to N2.89 billion on Friday, from the N3.02 billion capitalisation reported the Friday before.

With the loss hanging over Berger Paints as the stock market resumes this week, traders need to be cautious, considering that the extent of investors’ apathy is uncertain.

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