Oando Soars by 40% as Energy Giant Escapes Bear Trap
With about a 40% increase in market value over seven trading sessions, Oando Plc has started to feel the sunshine in the equities market. Data obtained from the Nigerian Exchange (NGX) revealed that investors have now placed higher value on the energy company stocks—thanks to good earnings results and expansion focus.
Oando has again been launched into a bullish zone with successive price upswings that have lifted the market value of the energy company’s 12.431 billion shares outstanding to N784.422 billion.
The indigenous energy company has had a share of sell pressures that plunged its market value to N500 billion, which means Oando has dropped down the ladder by N700 billion from its peak value.
Last year, investors were in a rush to get inside as Oando shareholders, but it did not take long before the euphoria fizzled out. The energy stock was priced at N12.50 at some points within 12 months and reached the 52-week high of N98.40.
According to data from the Nigerian Exchange, Oando climbed to N63.1 on Wednesday, a stock that had barely seen attention from the buy-side actors before its audited earnings report for 2024 was released. Post-filing of the audited report has boosted investors’ confidence strongly, and the improved sentiment has started to reflect on the trading activities and directions.
While some investors were selling, a slew of equities analysts kept Oando on buy rating, citing strong fundamentals that supported earnings growth. “There was a touch of bandwagon trading direction on the stock”, a Broadstreet analyst said in a chat with MarketForces Africa.
Oando has gained 11% in the last two trading sessions, and it could be heading for a much higher valuation at the end of the week, as stock data showed the company has recorded gains in the last seven trading sessions in the equities market.
In the last seven days, Oando has gained 39.60%, which is significant for the energy company repricing in the stock market, boosting shareholders’ wealth. #Oando Soars by 40% as Energy Giant Escapes Bear Trap Dangote Cement Opens N100bn Commercial Papers for Subscription
