Okomu Oil, Total Energies Lead Market Rally Amid Governance Protests

Nigeria’s equities market recorded its first positive close of the week on Friday, August 2, 2024, with the Nigerian Exchange Limited (NGX) All-Share Index rising by 0.40 percent.

This increase, equivalent to a N219 billion gain, brought the market’s capitalisation up to N55.497 trillion, defying the ongoing protests against bad governance and economic hardship.

Despite the widespread protests that saw aggrieved Nigerian youths take to the streets across major cities, investors showed renewed confidence in the market.

Key stocks such as Okomu Oil Palm, Total Energies, May & Baker, Oando, and United Capital saw significant buying interest, leading the market rally.

The NGX All-Share Index climbed from the previous day’s low of 97,359.76 points to 97,745.73 points, reflecting a growing investor appetite amidst the half-year (H1) earnings season.

The rally was particularly bolstered by substantial gains in the shares of Okomu Oil Palm and Total Energies, which emerged as top performers.

Okomu Oil Palm’s share price surged from N292 to N321.20, marking a notable increase of N29.20 or 10 percent.

Total Energies followed closely, with its share price rising from N388.90 to N427.70, an addition of N38.80 or 9.98 percent.

Other significant gainers included May & Baker, which saw its share price climb from N6.40 to N7.04, up by 64 kobo or 10 percent, and Oando, which increased from N23 to N25.30, gaining N2.30 or 10 percent.

United Capital also experienced a boost, with its share price rising from N11.05 to N12.15, up by N1.10 or 9.95 percent.

The resilience of the equities market amidst the protests underscores the confidence investors have in the Nigerian economy and its capital market.

Analysts at Lagos-based Vetiva Research had anticipated a bearish trend in the consumer goods and banking sectors due to the protests.

However, the unexpected rally suggests that the market’s fundamentals remain strong.

In total, investors exchanged 210,911,640 shares worth N3.951 billion in 6,603 deals. Actively traded stocks included UBA, Japaul Gold, Oando, Zenith Bank, and Veritas Kapital Assurance, highlighting a broad-based interest across different sectors.

The market’s year-to-date (YtD) return now stands at an impressive 30.72 percent, reflecting sustained investor confidence despite the socio-political challenges.

This positive close provides a boost to market sentiment as the NGX continues to navigate the complexities of Nigeria’s economic landscape.

Ayodele Abioye, Managing Director of BUA Foods Plc, commended the market’s resilience.

“This robust financial performance amidst challenges is a testament to the efficacy of strategic initiatives and the unwavering dedication of our stakeholders,” he said.

“We remain confident in our ability to navigate market challenges and deliver long-term value.”