Oando Energy Falls by 10% over Sell Pressure
Oando Energy Plc market valuation has dropped further due to sustained sell pressure on the energy stock in the local bourse. The company lost about N91 billion of its market value in the just concluded week due to selloffs.
Since reversed trade on Oando Plc started, the company has lost more than 36% of its market value in the stock market. According to data from the Nigerian Exchange, the dual-listed energy company fell by 10% week on week as investors’ sentiment reversed from the previous trend.
Analysts noted profit-taking activities became the norm after the group released its earnings results for financial year 2023 and half year 2024. Though data from the local bourse showed signs that the energy stock has started to recover from strong selloffs witnessed after it released half-year unaudited earnings.
On week-on-week comparison, Oando Enegry Plc’s share price dropped to N62.65 on the Nigerian Exchange from N69.65 at the beginning of the recent past week.
At the current price, the company’s market value settled at N778.827 billion in the equities market. Analysts expect investors’ sentiment to stabilise ahead of the fourth quarter of 2024, noting that Oando Energy Plc is attending to some market sentiment issues.
The stock performance is driven by sentiment per se; Oando itself has created an opportunity to increase future earnings streams with recent acquisitions, stockbrokers told MarketForces Africa, citing issues with minority shareholders.
At the current share price, Oando Energy Plc is trading at a more than 36% discount to its 52-week high. The stock price had surged to N98.4 before it began to retreat. #Oando Energy Falls by 10% over Sell Pressure Naira Depreciates Ahead of 2-Week Automated FX Trading Trial
