02 June 2014, Lagos – High demand for the shares of Forte Oil Plc lifted its price at the stock market by 64.89 per cent to lead the gainers for the month of May. Statistics of trading for the month of May released by the Nigerian Stock Exchange (NSE) last Friday, showed that about 45 equities appreciated during the month. Forte Oil led the chart with 64.89 per cent. The stock rose from N148.99 in the beginning of the month to close at N213.88. Nestle Nigeria Plc closed as the second highest price gainer, appreciating by 33 per cent. The equity rose from N1, 040 to close at N1,073.
Seplat Petroleum Development Company Plc garnered 32.64 per cent to occupy the third position. The stock grew from N626.31 to N658.95, while Nigerian Breweries and Mobil Oil Nigeria Plc occupied the fourth and fifth positions. The equities gained 26.1 per cent and 11.76 per cent respectively. Market operators said high demand for the shares of Forte Oil, which propelled the 64.89 per cent gain was induced by the prospects they have seen in the company.
Forte Oil was recently included in the Morgan Stanley Capital International (MSCI) Frontier Market 100 Index. A development, market operators described as a testament to the fundamentals and strong growth potential of the energy company.
MSCI is a leading provider of investment decision support tools to over 6,000 clients worldwide, ranging from large pension plans to boutique hedge funds. The Equity Index provider is present in 23 countries and offers a range of products and services – including indexes, portfolio risk, performance analytics data and research.
According to them, the inclusion of Forte Oil will be a driver of imminent inflow of foreign direct investments that will compete strongly with local investment. They had therefore, urged Nigerian investors to take advantage of this development and increase their stake ahead of the growing appetite from offshore players.
One of the operators and Managing Director of Crane Securities Limited, Mr. Mike Ezeh, said: “I am not surprised at the inclusion of Forte Oil in the MSCI Index. The turnaround in the fortunes of the oil products marketing firm in recent times, the returns its share price has delivered and the strategies the board and management have put in place to sustain this outstanding performance, are clear indications that the future is definitely bright for stakeholders of the company.”
– This Day