Stocks to watch this week comprises the top gainer and loser of the previous week, as well as stocks in the news for one reason or the other. Here are the top three picks of the week.
Niger Insurance Plc
Niger Insurance was the worst performing stock last week. The stock declined by 18.92%. Insurance stocks have witnessed turbulent trading since the announcement of a new tier based capitalization requirements by NAICOM. While its implementation has been suspended, many of the firms have commenced raising of capital. The stock could witness more sell pressure in this trading week.
AIICO Insurance Plc
AIICO Insurance Plc had her Extraordinary General Meeting (EGM) which held last Friday. Investors gave approval for a planned N5.28 billion private placement. Investors could either decide to take position in the stock in anticipation of an upward climb or exit the stock due to the potential dilutive effect.
LASACO Assurance Plc
LASACO Assurance Plc also has an Extraordinary General Meeting (EGM) holding this week. The company intends obtaining shareholder approval to increase its authorized share capital by 40 billion shares. Investors could decide to exit the stock, in view of the dilutive effect of a possible capital raise.