How Mobil’s stock soared 66% in two weeks

Mobil Oil Nigeria Plc’s shares have recorded a 66 percent appreciation in the last two weeks, as share price rose from N195 to N324 per share.

Analysis showed that the increase represented a growth in investor’s worth rose from N70.3 billion as at 18th November 2016 to N116.9 billion, at 2nd December 2016.

The growth, which was initially preceded by OPEC’s announcement on the decision to embark on its first output cut in a bid to reverse the slump in global oil prices, was strengthened upon disclosure of  NIPCO investment Limited’s offer of $301 million for Exxon Mobil Oil Corporation’s 60 percent stake in Mobil Oil Nigeria Plc.

OPEC’s decision last Wednesday to cut output also strengthened Mobil’s share price, and that of other oil stocks in Nigeria and across the globe, resulting in significant rally in the last trading days of the week.

The NSE Oil and Gas Index soared to a record high of 4.18 percent on Friday alone, as significant appreciation were recorded in other petroleum product marketers such as Forte Oil, Oando and Total Nigeria in the three days following the cut which led to a surge in the price of Brent crude that rose to $54.46 a barrel on Friday.

Following this, the Nigerian equities market recorded the highest increase in three months of 1.88 percent, as the NSE All-Share Index and Market Capitalization appreciated by 1.61 percent and 1.54 percent to close the week at 25,740.83 basis points and N8.855 trillion respectively last week.

All other Indices also finished higher during the week with the exception of the NSE Insurance Index that depreciated by 2.04 percent while the NSE ASeM Index closed flat In the course of the week, a total of 27 equities appreciated in price, unchanged from the previous week.

Thirty-two equities depreciated in price, higher than 26 equities of the previous week, while one 116 equities remained unchanged, lower than 128 equities recorded in the preceding week. According to the NSE’s weekly report, a turnover of 2.479 billion shares worth N9.988 billion in 12,059 deals were traded by investors, in contrast to a total of 639.439 million shares valued at N6.455 billion that exchanged hands previous week in 11,799 deals. The Financial Services Industry (measured by volume) led the activity chart with 2.369 billion shares valued at N5.305 billion traded in 6,590 deals, thus contributing 95.56 percent and 53.12% to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 33.630 million shares worth N2.758 billion in 2,222 deals. The third place was occupied by the Conglomerates Industry with a turnover of 32.939 million shares worth N41.190 million in 586 deals.