Home Business Investors jostle for Oando shares as index slumps further by 0.8 per cent | The Guardian Nigeria News

Investors jostle for Oando shares as index slumps further by 0.8 per cent | The Guardian Nigeria News

Experts list ways to tackle Nigeria's economic woes | The Guardian Nigeria News

After the recent settlement of Oando’s four years rift with the Securities and Exchange Commission (SEC), the shares of the petroleum marketing giant led the gainers’ chart with 9.87 per cent from N3.97 on Friday, July 23, 2021, to N4.36 on Monday, July 26, 2021.

Similarly, transactions in the shares of Oando topped the activity chart with 56.252 million shares valued at N288.491 million.

Although the share price of the company declined at the end of yesterday’s transactions due to profit-taking embarked upon by investors to recoup their investment in the stock, analysts expressed optimism on bountiful yield for shareholders going by the stock’s attractiveness and current low valuation.

Speaking on the jump in share price, an Oando shareholder said: “We are glad that the dispute is finally over, and we thank the regulator and the management of Oando Plc for resolving the issue in the best interests of the shareholders. For four years, we the shareholders have been the ones on the receiving end. In just one week of settling, our share price has seen a significant increase.”

Meanwhile, the equities market yesterday closed trading on a bearish note, extending the losing streak to three consecutive trading sessions yesterday, causing the All Share Index (ASI) to dip further by 0.8 per cent.

Specifically, the ASI dropped by 306.21 absolute points, representing a decline of 0.79 per cent, to close at 38,484.82 points. Similarly, the overall market capitalisation value dipped by N160 billion to close at N20.051 trillion.

The negative performance was buoyed by investors’ sell-off in all the major market sectors, especially BUA Cement, UAC of Nigeria (UACN), Flour Mills of Nigeria, NASCON Allied Industries and Guaranty Trust Bank Holding Company (GTCO).

Analysts from Investdata Consulting Limited said: “We are seeing more companies rushing to meet the regulatory submission timeframe, and expect that market volatility will continue.

“Despite the slowdown in momentum at the end of midweek’s trading, profit-taking may not endure. This is because the earnings inflow remains robust enough to support market fundamentals and stock prices, going forward.”

Analysts at Afrinvest Limited said: “In the final trading session, we anticipate an extension of the sell pressure as investors continue to adjust their holdings in response to the recent FX regulation. Albeit, we see a potential for bargain hunting in the market.”

22 stocks recorded price depreciation while 17 others gained. Tripple Gee & Company recorded the highest price gain of 10 per cent to close at 99 kobo while Regency Alliance Insurance followed with a gain 9.76 per cent to close at 45 kobo.

Consolidated Hallmark Insurance went up by 9.26 per cent to close at 59 kobo. Prestige Assurance rose by 8.89 per cent to close at 49 kobo. Academy Press gained 8.57 per cent to close at 38 kobo.

On the other hand, Oando led the losers’ chart by 9.70 per cent to close at N4.75 kobo.

UACN followed with a decline of 8.93 per cent to close at N10.20, while Linkage Assurance lost 7.69 per cent to close at 60 kobo.

FTN Cocoa Processors lost 7.55 per cent to close at 49 kobo, while UPDC Plc shed 5.56 per cent to close at N1.19 kobo.

The total volume of trades rose by 9.5 per cent to 259.968 million units, valued at N1.982 billion, and exchanged in 4,975 deals. Transactions in the shares of Oando topped the activity chart with 56.252 million shares valued at N288.491 million.

GTCO followed with 15.287 million shares worth N444.928 million, while Jaiz Bank traded 14.899 million shares valued at N9.219 million.

Fidelity Bank traded 14.393 million shares valued at N34.244 million, while Wema Bank transacted 12.215 million shares worth N10.084 million.

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