MTN Nigeria, Fidelity Bank and Zenith Banks are some of the stocks to watch out for as the Nigerian stock market resumes for another trading session this week.
Fidelity Bank
In a quest to improve its earnings, increase foreign clients’ list, and become a tier 1 bank in Nigeria, Fidelity Bank completed the takeover of Union Bank’s subsidiary in the United Kingdom last month.
The acquisition is meant to make Fidelity Bank competitive against its Nigerian market rivals that are pushing to serve Nigerians oversees and foreign investors, becoming a channel for African investment inflow from UK.
This will improve Fidelity Bank’s top and bottom line going forward, as well as provide a chance of raising dividends paid out of shareholders.
Zenith Bank
Zenith Bank chairman, Jim Ovia, sold over 8.03 million shares held in the lender through Quantum Zenith Securities on August 29, at a period the company’s share is depreciating.
The shares Ovia sold is worth over N176.78 million. This comes three months after the investment banker acquired one million shares in May 9, worth N24.35 million.
This means Ovia sold more shares than he bought as Zenith Bank’s share falls –14.52% year-to-date. Such move by a high-level executive in a company could influence further sell off among minority investors, as board members’ exchange floor activities are usually used as a map by other investors, so trading with caution this week is suggested.
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