Nigerian Breweries, International Breweries, BUA Foods and Unity Bank should be on your stocks to watch list for this week, as the companies struggle with government policy and investor interest.
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
The Nigerian Breweries made it to the list of stocks to watch following the declaration of the Federal Government that non-alcoholic producers will now be charged excise duty on each product.
This policy is expected to have a ripple effect on the turnover of Nigerian Breweries, which might have an impact on the value created for shareholders through dividends in the long run.
The excise duty policy set to be imposed on the soft drink producers will also impact the revenue generation of International Breweries this year.
International Breweries and its rivals are at risk of recording a dip in demand as the N10 per litre will drive cost of their non-alcoholic products, affecting customers purchasing power.
With the excise duty’s potential in reducing turnover, shareholders value derived from increased sales could dwindle during the period the tax will be effective.
The company listed 18 million ordinary shares of 50 Kobo each on the Main Board of the Nigerian Exchange Limited on January 5, 2022 at N40.00 per share, and the share has appreciated by 33 percent.
BUA Foods stock will open the capital market at N53.20kobo per share this week, as the company continues from its gainers position of last week, a reason to have it on your stocks to watch.
Unity Bank will open this week’s trading from the loser’s position after its share depreciated by 7.41 percent, which represents a loss of N0.04kobo.
The lender’s stock had started last week capital market activities at a worth of N0.54kobo per share, but the equity will be sold at a lower value of N0.50kobo, as investors price the stock low.
The dip in Unity Bank’s share value is an opening for prospective investors to expand their portfolio to the lender, but trade with caution as the sell off could persist.