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Geregu, Zenith Bank, and Courtville are stocks to watch this week

Stocks to watch this week include Geregu, Zenith Bank, and Courtville. The companies made the list for different reasons that could impact shareholders’ investments.

NGX building

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.

Geregu

Geregu was one of the best-performing stocks last week after reports emerged that Africa Export and Import Bank (Afreximbank) has acquired a five per cent stake in the firm.

There has been a discussion between Geregu and the Fund for Export Development in Africa (FEDA), which is a subsidiary of Afreximbank

Prior to the report, Geregu’s share was trading flat at N224 for three days, however, after the company announced the acquisition has been sealed, investors reacted positively to the news, driving the share value up.

Demand for Geregu’s shares rose in response to the acquisition, increasing the value of the stock by 13.83 per cent, which represents an addition of N77.70 billion to shareholders’ investments.

This makes Geregu stock one to watch this week, as the equity is currently enjoying the bulls’ patronage, but trade with caution, as the growth in share value, could also trigger profit-takers, which would wipe off last week’s gains.

Zenith Bank

Investors considering trading or investing in Zenith Bank’s shares will not have a clear picture of the company’s financial strength until late March, as the firm postponed the release of its earnings result.

A financial statement is vital for shareholders and or equity investors, as it’s one of the factors that determine the mood of the capital market towards equity.

Failure to release financials when due could make the capital market jittery, and in turn, negatively affect shareholders’ investment value.

Not only does the delay in releasing the financials affect investors, but it also affects Zenith Bank, as the company could be fined for not submitting the earnings result as stipulated by the capital market authority.

The monetary fine will tank the earnings of the company, reducing their bottom line, from which shareholders are paid dividends.

Courtville

BOWS Nigeria Limited, the majority shareholder of Courtville Business Solutions Plc, has triggered a mandatory takeover of the company.

The majority shareholder intends to take Courtville private by acquiring the shares of minority investors in the company. It has received approval from the Securities and Exchange Commission (SEC).

Currently, BOWS Nigeria owns 67.01 per cent of Courtville, while the minority investors account for a 32.99 per cent stake in the firm.

After acquiring the stake from the minority shareholders, BOWS will delist Courtville from the Nigerian Exchange Limited (NGX), which is the stock market.

This offer could increase demand in the capital market, as investors will look to profit from the buy-out, which usually sees the majority shareholder paying handsomely for the shares held by minority shareholders.

Regardless, investors need to trade with caution, as the minority shareholders could reject the offer, which has a timeframe between February 22, 2023, and March 22, 2023.

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