Since President Bola Tinubu’s assumption of office on May 29, 2023, the Nigeria Exchange has recorded a remarkable bullish run, with the oil and gas stocks gain going over 44%, Nairametrics has reported.
The equity market has responded positively to the implementation of major economic policies by the President, garnering widespread investor confidence.
Notably, the removal of Godwin Emefiele as the Governor of the Central Bank of Nigeria and the unification of the exchange rate have contributed to the impressive performance of the NGX, resulting in a gain of N1.67 trillion within just four days.
In this article, Nairametrics takes a closer look at the significant growth observed in the shares of the Top 5 Stocks in the Oil and Gas Sector by market capitalization (TOTAL Energies, Conoil Plc, MRS Oil Nigeria Plc, OANDO Plc, and Seplat Energy Plc) since President Tinubu’s inauguration, especially with the removal of fuel subsidy which is crucial with the Oil and Gas sector.
We examine the potential gains an investor would have made by investing one million nairas in each of these stocks, assuming they were purchased on the last business day before the inauguration, which was Friday, May 26, 2023.
Before we delve into individual performances, let’s consider the total investment and overall gains.
With an initial investment of five million nairas distributed equally among the Oil and Gas stocks, investors would have seen their portfolio grow to a staggering total of N7,200,700. This represents a remarkable gain of 44.01%, amounting to a profit of N2,200,700.
Now, let’s analyze the performance of each stock
TOTAL Energies Plc (40.56%)
On May 26, 2023, TOTAL Energies closed at N249 per share. However, as of June 27, 2023, the share price had increased by 40.56% to N350 per share.
This surge in value propelled the market capitalization from N84.54 billion to N118.83 billion.
For an investor who had allocated one million nairas to TOTAL Energies, the gain would amount to N405,600.
Conoil Plc (71.01%)
Shares of Conoil closed at N47.95 per share on May 26, 2023. By June 27, 2023, the share price had soared by an impressive 71.01% to N82 per share.
This increase led to a surge in market capitalization from N33.27 billion to N56.90 billion.
Investors who allocated one million nairas to Conoil would have gained N710,100.
MRS Oil Nigeria Plc (93.63%)
MRS Oil Nigeria Plc shares closed at N40.80 per share on May 26, 2023. As of June 27, 2023, the share price had surged by an impressive 93.63% to N79 per share.
The market capitalization grew from N14 billion to N27.09 billion.
Investors who allocated one million nairas to MRS would have gained N936,300.
OANDO Plc (-1.78%)
OANDO Plc shares traded at N5.6 per share on May 26, 2023. By June 27, 2023, the share price had dropped slightly by -1.78% to N5.5 per share.
The market capitalization also dropped marginally, from N69.61 billion to N68.37 billion.
Investors who allocated one million nairas to OANDO would have lost -N17,800.
Seplat Energy Plc (16.65%)
Seplat Energy traded at N1,200 per share on May 26, 2023. As of June 27, 2023, the share price had appreciated to N1399.8 per share, signifying a 16.65% increase.
Investors who allocated one million nairas to Seplat Energy would have gained N166,500.
Nairametrics
