Oando Rallies Turn to Head Fake, Loses 15.6% in 2 Days
Indigenous energy company Oando Plc lost its steam in the equities market; its share price dropped twice in the last two trading sessions on the Nigerian Exchange trading platform after a series of uptrends last week, which suggested that the oil-linked stock had escaped the bear trap.
Oando Plc’s price has declined by about 15.6% in two consecutive trading sessions. This has raised concerns about whether its past week’s positive price movements were a head fake.
According to data from the Nigerian Exchange, Oando Plc’s share price fell sharply, losing 9.97% of its opening market value on Tuesday as 5.468 million units valued at N329.821 million changed hands.
Oando surged to N69 in the stock market last week as investors returned to take their positions in anticipation of earnings growth. However, the energy company’s share price has lost 15.57% since the beginning of the week, reversing its race towards a 52-week high.
A slew of equity analysts are having high expectations about Oando Plc’s performance after the consolidation of NAOC acquisition into the group earnings. The energy company also announced shares distribution to its shareholders while it maintains its expansion focus.
In its outlook, the company plans to rev up capital expenditure to bolster its future earnings streams and recently upsized its reserve-based loan from Africa Export and Import Bank to $375 million.
Oando has strong fundamentals and has proven its mark in the industry. The stock was among the top performers in 2024, but its latest trading data in the equities market reflects investors’ weak sentiment.
The market value of Oando’s 12.431 billion shares outstanding fell by 9.97% to N724.19 billion on Tuesday due to investors’ weak sentiment. #Head Fake? Oando Pulls Back Sharply, Loses 15.6% in 2 Days CBN Cuts Interest Rates on Treasury Bills, Rejects Excess Demand
