L
LequteMan
Guest
Despite the blow dealt to stocks in the oil and gas sector, Forte Oil remains standing, refusing to tank territories not seen since 2013, Nairametrics says.
Whilst most stocks hit their multiple one year lows this month FO at worst dipped below N200. Forte Oil has a year low of N82.4 which it touched back in January. Whist most NSE 30 stocks took a pounding, FO only dropped to N175 on November 10 before roaring past N200 again.
Experts say the ‘Otedola Effect’ is the reason FO remains strong and steady.
The belief is majority owners of the stock will not allow it free fall like maybe the likes of FBNH or Seplat would. Otedola owns directly and indirectly 6% and 19% of the equity of the company respectively as at December 2013. That is a combined 25% plus holding.
Nevertheless, it is not enough for the stock to be immune to a massive sell offs, considering that Dangote Cement which is 95% owned by Aliko Dangote hit multiple year lows this period.
Could this then be some of manipulation of the stock or just perhaps a strong technical resistance that somehow shields the stock from sliding uncontrolled. Whatever the case, it’s still the Otedola Effect.
#Nigeria #ForteOil
Whilst most stocks hit their multiple one year lows this month FO at worst dipped below N200. Forte Oil has a year low of N82.4 which it touched back in January. Whist most NSE 30 stocks took a pounding, FO only dropped to N175 on November 10 before roaring past N200 again.
Experts say the ‘Otedola Effect’ is the reason FO remains strong and steady.
The belief is majority owners of the stock will not allow it free fall like maybe the likes of FBNH or Seplat would. Otedola owns directly and indirectly 6% and 19% of the equity of the company respectively as at December 2013. That is a combined 25% plus holding.
Nevertheless, it is not enough for the stock to be immune to a massive sell offs, considering that Dangote Cement which is 95% owned by Aliko Dangote hit multiple year lows this period.
Could this then be some of manipulation of the stock or just perhaps a strong technical resistance that somehow shields the stock from sliding uncontrolled. Whatever the case, it’s still the Otedola Effect.
#Nigeria #ForteOil
