MTN Nigeria, Airtel and Ellah Lakes are stocks to watch this week

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For this week’s stocks to watch, MTN Nigeria Airtel and Ellah Lakes should be on your list, as the Nigerian exchange return for another week of trading activities.

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.

MTN Nigeria

Last week, Ripples Nigeria reported that MTN Nigeria lost 7.28 million telephony users within the first half of 2023. During the same week, the company’s share depreciated slightly by 0.4 per cent.

The decline in MTN Nigeria’s telephony subscriber base dragged the total users down to 84.66 million from 91.95 million between January to June.

After the report, the telecommunications company recorded negative trade in the stock market, which resulted in shareholders losing a total of N23.09 billion within five days.

While the loss in the capital market wasn’t enough to put MTN Nigeria on the top 10 losers, the firm still made the decliners’ list and would be opening trading this week on the back of last week’s decline – so investors need to trade with caution.

Airtel Nigeria

In the first six months of this year, Airtel Nigeria had also lost 373,035 telephony users. This left the company with 60.19 million subscribers as at the end of June, compared to January figures of 60.56 million users.

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However, the report of the loss wasn’t met with selloffs among the shareholders of Airtel Nigeria, instead, the value of the company’s share uptick by 3.2 per cent after five days of trading.

The growth in Airtel’s share price handed the company’s shareholders N150.32 billion gain. However, note that this could also attract profit-takers as the stock market resumes trading this week.

So investors should be cautious during trading this week, as last week’s gain could either fuel the momentum or result in selloffs, as profit-takers move to milk the gain recorded.

Ellah Lakes

Last week, Ellah Lakes closed equity trading as the second top gainer after shareholders’ investment grew by 28.79 per cent, which represents N1.90 billion gain between Monday to Friday.

Shareholders’ investment value increased on the back of the capital market’s renewed interest in Ellah Lakes after the company announced that it will conduct a Rights Issue to raise N2.90 billion.

The Rights Issue will see Ellah Lakes sell one billion shares of the company to existing shareholders at a discounted price of N2.90 kobo per share, which is N1.35 kobo lower compared to its last closing price of N4.25 kobo.

While demand for Ellah Lakes’ shares has increased ahead of the Rights Issue (application closes on October 9, 2023), profit-takers could also descend on the firm, considering the weeks before, shareholders had recorded no growth, but instead decline in their investments.

Investors need to trade with caution.

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