Top 5 NGX Stocks to Track Next Week: Market Picks Unveiled

As we approach the concluding month of 2023, heightened activity is anticipated on the Nigerian Exchange (NGX) this week, marked by portfolio managers initiating assessments and adjustments.

This week, keep an eye on five noteworthy stocks in the Nigerian Stock Market. Please note that these stocks are listed without any specific order, as this is not a ranked compilation.

InfoStride News brings you insights into the market movers:

1. **Mecure Industries (MECURE):**
Mecure has surged to prominence on the NGX since its listing by introduction on November 9, 2023. Demonstrating an impressive growth of 211%, its share price soared to N9.21 on November 24 from the initial N2.96 on its debut. However, concerns about potential market manipulation have arisen, with speculation surrounding efforts to artificially inflate Mecure’s share price ahead of an anticipated Initial Public Offering (IPO) next year. The sustainability of Mecure’s momentum remains uncertain following its appearance on the top gainers’ list for four out of the five trading days last week.

2. **Unity Bank (UNITYBNK):**
Following discussions about a potential merger with Providus Bank, Unity Bank’s shares have experienced an 89% surge in just over a week, bringing smiles to the faces of shareholders. Against the backdrop of CBN Governor Yemi Cardoso’s call for increased capitalization of Nigerian banks at the CIBN Dinner, talks of mergers and acquisitions have dominated the banking space. With Unity Bank’s management facing inquiries over its below-par financial performance in 2023, the merger discussions may intensify this week.

3. **GSK Consumer Nigeria (GSK):**
With a court-ordered meeting scheduled with shareholders on December 5, 2023, GSK is under the spotlight this week. Since announcing a proposed capital return price of N17.42 per share on November 3, its share price has risen by 37% to close at N17.00 on November 24. The likelihood of GSK’s share price surpassing the proposed N17.42 is significant, potentially leading to shareholders rejecting the suggested price. As GSK finalizes its delisting from the NGX and complete exit from Nigeria, media attention on the company is expected to escalate.

4. **PZ Cussons Nigeria (PZ):**
Similar to GSK, PZ is in the process of delisting from the NGX, but it is opting for private status rather than a complete exit from Nigeria. Ahead of its shareholders’ meeting on December 8, 2023, the company has announced a buyout offer price of N21 per share, presenting a challenge as its share price was N23.00 as of November 24. This week, market players are likely to engage in discussions surrounding PZ as they seek to navigate the opportunities presented by the company’s strategic move.

5. **Guinness Nigeria (GUINNESS):**
The board of directors at Guinness Nigeria is set to convene on November 27, with the agenda focusing on “strategic business issues.” Following Diageo Plc’s decision on October 5 to terminate its importation and distribution deal with Guinness Nigeria for premium spirits, strategic decisions are expected to be made during this meeting. With these products contributing 6% of revenue for Guinness Nigeria, the board’s decisions will likely have a significant impact on the business.

In summary, this week promises to be eventful on the NGX, with these selected stocks poised to influence market dynamics. Stay tuned for updates and developments as the week unfolds.