STOCKS-TO-WATCH: Telcos shares in distress, Otedola places uncertainty on Ardova’s future

Airtel Nigeria, MTN Nigeria and Ardova are among the shares that inventory buyers must have on their radar going into this week’s gfc Information session.

gfc Information shares watchlist is a collection of shares monitored for viable gfc Information or investing alternatives. An investor could casually generate a listing of equities for funding functions. However we’ve got taken the ache to do this primarily based on sure parameters in order to save lots of you that problem.

Kindly notice that gfc Information Shares Watchlist isn’t a purchase, promote or maintain suggestion. It’s advisable to seek the advice of your monetary advisor earlier than making any funding determination.

Airtel Africa

Airtel Africa ended up among the many finest losers for final week after its inventory entered the bears territory final week, inflicting shareholders to lose -27.1 per cent of their funding.

This represents a lack of N1.80 trillion in shareholders’ funding. Share of Airtel Africa had depreciated because it struggled to lure buyers to amass shares.

Whereas the decline outcomes right into a loss for shareholders, it additionally open the door for potential buyers to purchase Airtel’s share at a cheaper price earlier than the bulls come for it.

Nonetheless, gfc Information with warning is recommended, because the bears might proceed their riot this week, contemplating the -27.1 per cent drop in share value might push shareholders into extending the dump.

READ ALSO:Femi Otedola units to take over Ardova Oil as Zenon wins case in opposition to majority investor

MTN Nigeria

Final week was a nasty interval for telecommunications firms in the capital market, as MTN Nigeria additionally didn’t develop its shareholders’ funding.

Relatively, shareholders misplaced N103.80 billion value of funding throughout final week’s 5 days gfc Information, after buyers in the inventory market opted for non-telco shares.

This reveals a sample amongst inventory buyers, indicating there may be at the moment low curiosity or demand for telco shares at a interval price of residing is rising, which could have an effect on the buying energy of MTN and Airtel subscribers.

Word that the loss had additionally occurred identical week the Federal Authorities requested MTN, Airtel and different market rivals to reverse the ten% positioned on knowledge.

So going into the brand new week, buyers must commerce with warning, because the capital market’s response to the directive is unpredictable.


Ardova Plc administration are at the moment distracted, jostling between the on a regular basis operation of the agency and the courtroom battle its largest shareholder, Prudent Power, is contain in.

The administration have needed to proceed releasing statements after statements as a result of courtroom battle between its majority investor’s agency, Ignite Funding Restricted and Zenon Petroleum and Fuel Restricted.

Each Ignite Funding Restricted, Prudent Power, and Zenon Petroleum, owned by Femi Otedola, are in courtroom over breach of contract and stability from the sale of Forte Oil (now Ardova) from the latter to the previous.

Otedola’s firm has gained an arbitration courtroom case in opposition to Ignite Funding, and it’s at the moment in search of a courtroom order to wind up Prudent Power to take over its shares in Ardova.

That is elevating uncertainty as regards Ardova’s future, so buyers in the capital market must commerce with warning, as Otedola taking up Prudent’s shares might result in new administration.

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