Oil and Gas Stocks Plummet 6.5% in One Week

Oil and gas stocks, along with banking stocks, were among the biggest losers on the Nigerian Exchange (NGX) for the week ending May 18, 2024.

The NGX Oil/Gas Index, which monitors the performance of five oil and gas stocks—Conoil, MRS, Eterna Plc, Seplat Energy, and TotalEnergies—dropped by 6.49 percent, ending the week at 1,177.92 points, down from 1,259.69 points the previous week.

These oil and gas stocks, including Oando Plc, collectively lost N194.1 billion in market value, with Seplat alone losing N193.7 billion as its market capitalization fell from N1.94 trillion to N1.74 trillion. MRS’s proposed delisting did not affect its stock price, which remained unchanged throughout the week.

Meanwhile, the NGX Banking Index ended the week at 791.54, showing a 5.31 percent decrease from last week’s figure.

United Bank for Africa (UBA) dropped by 17.23 percent, while Unity Bank and FCMB Group fell by 12.57 percent and 11.39 percent respectively.

Overall market highlights
During the week, the NGX’s All-Share Index slightly decreased by 0.11 percent to close at 98,125.73 points, down from 98,233.76 points last week. Equities lost N54 billion as the market capitalization ended at N55.508 trillion, a 0.10 percent decline from last week’s N55.562 trillion. The market finished the week with a year-to-date gain of 31.23 percent, a dip from last week’s 31.37 percent.

The market breadth was negative this week, with 28 stocks recording price gains compared to 40 last week. However, 51 equities saw price losses this week, up from 37 the previous week. Seventy-six equities had no price changes during the week.

Investors traded 1.652 billion shares worth N42.677 billion in 38,123 deals on the Exchange floor this week. This represents a decrease from last week’s total of 2.187 billion shares valued at N50.667 billion, exchanged in 45,277 deals.

The top gainers this week included International Energy Insurance, McNichols Plc, Custodian Investment Plc, and Julius Berger Nigeria Plc, which gained 11.49 percent, 9.89 percent, 9.68 percent, and 9.53 percent respectively. Airtel Africa saw the largest gain in value, rising 8.97 percent, with its market cap increasing from N7.41 trillion to N8.08 trillion during the week.

Tantalizers Plc continued its bullish trend from last week when it gained 27.78 percent. This week, Tantalizers rose by 8.70 percent, ending the week at N0.50. Since announcing its N1.07 billion capital raise on May 7, Tantalizers has been on a bullish run.

Among the top losers, PZ Cussons Nigeria led with a 22.16 percent drop, bringing its share price down to N21.60. The company’s share price also fell by 26.97 percent during the week ending May 10, 2024.

So far in May 2024, PZ Cussons’ share price has plunged by 75.9 percent, as the company undergoes structural changes instead of delisting from the NGX.

Other significant losers included NEM Insurance, Eterna Plc, and UBA, which lost 18.36 percent, 18.32 percent, and 17.23 percent respectively. Initiates Plc and Omatek Ventures Plc also declined by 15.22 percent and 14.86 percent respectively.