Stocks to watch this trading week ending June 29 2018

Stocks to watch comprises stocks which Nairametrics has on its radar. These could be for various reasons such as corporate actions, deals, acquisitions, as well as other news.

Among the stocks on our watchlist are those likely to join the NSE 30 by July. The NSE 30 index comprises the 30 biggest companies, according to market capitalization.

A segment of the Nigerian Stock Exchange (NSE) report for the week ended June 22, 2018, states that the bourse would implement a mid-year review of the NSE indices. Reviews are on a bi-annual basis, with the first having taken place on the 1st of January this year. 

Indices reviewed include the NSE 30, sectoral indices and NSE Lotus Islamic Index. Here is a brief explanation of how and why the indices are rebalanced. 

Why should you keep an eye on them?

Portfolio managers tend to mirror the composition of the NSE indices. This, in the short term, could lead to an increase in trading volumes in these stocks.

N.E.M. Insurance

NEM Insurance tops our watchlist this week by virtue of what seems to be the beginning of an ownership tussle. The company’s intentions to raise N2.64 billion through a private placement may be met with stiff opposition from key shareholders.

FCMB Group Plc

Tier two lender, FCMB Group Plc, is yet to release its financial statements for the first quarter ended March 2018. Year to date, the stock is up 47.97%. Being a banking stock, it would witness increased trading volumes, when it is added to the NSE 30 index.

Oando Plc

Oando Plc rallied in the first quarter of the year, following the lifting of a technical suspension by the NSE in April. Returns have since tapered off, in line with market sentiments and investors selling down to unlock capital gains. Year to date, the stock is up 9.35%. Oando will be included on the NSE 30 index, hence its place on our watchlist. 

Beta Glass Plc

Beta Glass Plc was Nairametrics stock pick last week. The stock’s illiquidity means that the move into the NSE 30 could lead to a slight rally in its share price. Year to date, the stock is up 68.19%.

UACN Plc

UAC of Nigeria PLC (UACN) was established in 1943 but has been active in the Nigerian space since 1879. The company operates in the Food and Beverage, Real Estate, Paint and Logistics sectors of the economy.

The stock could be added to the NSE 30 index watchlist, hence its place on our stocks to watch this week.

Sterling Bank Plc

Sterling Bank Plc is a tier two lender. Year to date, the stock is up 25.93%. The stock will be included on the NSE 30 index sometime soon, hence, its place on our watchlist.

Capital Hotels Plc

Capital Hotels Plc was incorporated on 16th of January, 1981, as a private limited liability company. It became a public liability company (Plc) on 31 May 1986. Its Hotel, Sheraton Abuja Hotel commenced business in January 1990.

The Company is a subsidiary of Ikeja Hotel Plc.

Capital Hotel Plc will be holding its Annual General Meeting (AGM) on the 27th of June, 2018, earning it a spot on our watch list.

AGMs are usually an opportunity for companies to inform shareholders of their outlooks for the current year.

NPF Microfinance Bank Plc

NPF Microfinance Bank will be holding its AGM on the 28th of June, 2018, hence, its feature on our watchlist. The dividend, if approved, will be paid on the same day. Investors tend to sell down a stock after receiving their dividends.

Mutual Benefits Assurance Plc  

Mutual Benefits Assurance will be holding its Annual General Meeting on the 27th of June, 2018.  Dividend payment will commence on the 28th of June, 2018. The dividend payment is the company’s first in nearly a decade.

MRS Oil Plc

MRS Oil is on our watchlist by virtue of the qualification date of the company this week. The company will be giving a 1 for 5 bonus to shareholders in its register as at the 28th of June. There could be a slight rally in its share price as intending investors take positions to benefit from the bonus issue.

BOC Gases Nigeria Plc

BOC Gases is on our watchlist by virtue of holding its AGM on the 28th of June, 2018. The dividend, if approved, will be paid on the same date.

Dangote Flour Mills Plc

Dangote Flour Mills held its AGM on the 22nd of June, 2018. Dividend payment will take place on the 27th of June, 2018. The company will be paying a dividend of N0.20 per share. 

Newrest ASL

Newrest ASL will be holding its AGM on the 26th of June, 2018. Dividend payment will take place the next day.

Okomu Oil Palm Nigeria Plc

Okomu Oil will be paying a dividend of N3.00 per share for the 2017 financial year on the 25th of June, 2018.