• Friday, March 29, 2024
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BusinessDay

Seplat up 7.4 percent at the close of trade today

The major market mover in the oil and gas index on the Nigerian stock exchange (NSE) Seplat Plc gained 7.4 percent as at the close of trade today, trading at N698 from its closing price of N650 yesterday.

This spike made it gained N48 as at the time of reporting this from its closing price of N650 yesterday, surpassing the N687 market price it attained on the 30th of July where it released its first half (H1) financial statement.

The total volume of trade done on this stock currently stands at 5 with a value of N3, 490.

The share price seems to be recovering from its fall from N710 on the 6th of August to N650 on the 7th of August when it broke the rising trajectory the stock was on after releasing its H1 financial statement.

Dolapo Ashiru an investment analyst said that “the fall a company market price is not necessary a bad thing, as it could just be profit taking by investors who wants to take gains and cash out from the increase in share price”.

This could explain what may have happened to the company as investors may have wanted to cash out from the high price of N710 it attained a week after it released its H1 financials.

“The company is both loved by foreign and local investors and is still a good buy for investors”, dolapo further said, “for as long as the crude oil price remains high the company whose major function is in upstream production of crude oil the revenues and margins will always be impressive he concluded”.

With the stock recently re-valued by analyst within the period of July to August ,13 out of 13 investment institution gave a buy rating for Seplat shares causing the Seplat share to have a 100 percent buy recommendation. With a 12 month target price at N979.04 and a 40.3 percent return potential. ARM, GMP and Investec lead the pack with a 43.87 per cent one year return on the stock.

The company’s H1 financial reported a Profit before tax and Profit after tax of 558 and 276 percent increase. As the earnings of the firm turned positive from the negative earnings it had the same period last year.