Oil, Gas Index Rises as Investors Shift Focus to Energy Stocks
The oil and gas index defied the overall negative trend in Nigeria’s equities market, rising by 1.73% as buying interest in key energy stocks like Con Oil Plc overshadowed losses from other major players such as Oando Energy Plc. The rally in Con Oil and other energy stocks boosted the index, even as Oando’s market capitalisation fell by nearly ₦100 billion, dragging the broader market down.
Stockbrokers noted that the Nigerian Exchange (NGX) market index moved in a downward direction due to profit-taking as investors sold off stocks that had seen recent gains. This selloff wiped out more than ₦50 billion from the total market capitalisation, with Julius Berger and Oando among the top decliners.
However, in spite of a bearish outlook in the global commodities market, local investors have maintained a bullish stance on oil-backed stocks, particularly in the upstream sector. Prior to the latest selloff, Oando had enjoyed significant buying interest, reflecting the sector’s resilience amid fluctuating oil prices.
Con Oil Leads the Surge
Con Oil Plc emerged as the standout performer, with its stock surging by 9.09%, rising from ₦154 to ₦168 per share. This marked a fresh 52-week high for the company, further reinforcing its strong position in the market. Con Oil has been trading well above its 52-week low, demonstrating sustained investor confidence in the firm’s outlook.
Seplat Energy also saw positive momentum, reaching ₦3,730.10 per share over the last seven trading sessions. Meanwhile, TotalEnergies remained stable, trading at ₦673.90 per share. Eterna Plc added ₦2 to its stock price since the beginning of the week, continuing its steady performance in the oil and gas sector.
Oil and Gas Sector Worth ₦3.756 Trillion
The total value of Nigeria’s oil and gas index now stands at approximately ₦3.756 trillion, with many companies trading at or near all-time highs. Japaul Gold, a smaller player in the sector, also recorded a gain of 11 kobo per share, translating into a market appreciation of about ₦1.6 billion.
Con Oil’s strong performance was particularly noteworthy, with the company adding ₦14 to its share price on its 693,952,117 total outstanding shares. This resulted in a capital gain of over ₦9.7 billion for the day. Despite the overall positive movement in the sector, MRS Oil remained relatively quiet on the NGX.
The oil and gas sector’s resilience stands in contrast to the broader market downturn, as investors continue to see opportunities in energy stocks amid fluctuating global oil prices and shifting market dynamics.
Sources: marketForce Africa.
