The market posted the second consecutive negative performance with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) declining by 0.47 per cent to close at 37,772.86 compared with a decline of 0.90 per cent the previous day.
However, the price gainers were led by MRS Oil Nigeria Plc and Conoil Plc with 10.23 per cent and 10.22 per cent respectively.
In absolute terms, MRS Oil appreciated by N4.42 to close at N47.63, while Conoil rose by N7.05 to close at N76 per share. Another oil stock, Oando Plc occupied the third with 4.9 per cent or N0.55 to close at N11.65 per share.
Market operators said speculative trading have been driving the prices of oil stocks lately, pushing some of them to new highs. For instance, Forte Oil has recorded a year-to-date growth of about 1,396 per cent, Conoil and MRS Oil have appreciated by 236 per cent and 81 per cent respectively.
Some of the companies have assured investors of brighter prospects based on various strategies they have put in place and investments they have made.
In the case of Conoil, its chairman, Mr. Mike Adenuga, recently promised that the company would continue to make progress towards delivering superior shareholder value.
Conoil recorded a growth of 341 per cent in profit before tax for the nine months ended September 30, 2013, from N699 million in 2012 to N3.1 billion. Profit after tax rose by 329 per cent, from N487.2 million to N2.09 billion in 2013.
On the other hand, investors are bullish on Oando Plc as the company recently reaffirmed its determination to conclude the acquisition of Conoco Phillips (COP) Nigerian Assets
The company had an initial deposit of $435 million deposit out of the $1.22 billion purchase price payable to complete the acquisition. Oando has already received commitment letters for up to $815 million of bank credit facilities.
– This Day