Major oil companies on Thursday on the Nigerian Stock Exchange (NSE) reacted positively to the Federal Government’s removal of subsidy and increase in petroleum price from N86.50 to N145 per litre.
Price appreciation posted by the oil companies lifted the market indices by 0.91 per cent after dropping for two consecutive days.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the growth to positive sentiments posted by oil and gas sector stocks due to hike in petrol price.
Omordion explained that many of the companies in that sector were into distribution and marketing of petroleum products with investors expectations that they would make higher margin.
He said “Its a positive news for both oil and banking sector because fuel importers will be able to cover more margins and repay their outstanding debt to banks.”
Consequently, market capitalisation which opened at N8.819 trillion inched N81 billion to close at N8.900 trillion.
Similarly, the All-Share Index rose by 234.44 points or 0.91 per cent to close at 25,865.06 compared with 25,630.62 achieved on Wednesday.
An analysis of the price movement table showed that Forte Oil topped the gainers’ chart with a gain of N10.50 to close at N220.50 per share.
Total came second on the gainers’ table appreciating by N9.19 to close at N159.60, while Nestle garnered N9 to close at N680 per share.
Mobil Oil grew by N5.50 to close at N160.66 and Seplat chalked up N5 to close at N345 per share.
However, Unilever led the losers’ table losing N1.22 to close at N36 per share.
Flourmill dipped N1.18 to close at N22.58 and Lafarge Africa lost N1 to close at N68 per share.
Presco dropped 68k to close at N35.02, while UPL decreased by 25k to close at N4.90 per share.
Similarly, the volume of shares traded closed higher with an exchange of 261.94 million shares valued at N1.49 billion transacted in 3,457 deals.
This was in contrast with a total of 198.46 million shares worth N1.60 billion traded in 3,538 deals on Wednesday.
Transcorp drove the volume of shares traded with 41.83 million shares valued at N44.89 million.
FBN Holdings sold 29.56 million shares worth N102.04 million and FCMB Group accounted for 28.25 million valued at N33.23 million.
Fidelity Bank recorded a turnover of 26.72 million worth N32.50 million and investors bought and sold 21.99 million shares of UBA valued at N77.13 million.
