The stock market rebounded wednesday to halt five days losing streak on bargain hunting. The Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) rose marginally by 0.03 per cent to close at 25,241.63 while market capitalisation closed higher at N8.689 trillion.
The bearish sentiment in the market was halted as bargain hunters positioned in blue-chips across banking and consumer goods sectors to lift the benchmark index which had been on a five-day losing streak.
The NSE ASI would have appreciated by 1.2 per cent but for decline of 2.5 per cent suffered by Dangote Cement Plc.
At the close of trading 18 stocks appreciated compared with 16 stocks that depreciated. However, Mobil Oil Nigeria Plc maintained its number spot on the gainers’ table, rising by 10.2 per cent to close at 266.67 per share. The stock had gone up by the same margin on Tuesday.
Mobil Oil has maintained an upward trend following the announcement that Nipco Plc is to acquire 60 per cent stake in the company.
Mobil Oil Nigeria Plc on Tuesday said Nipco Plc would pay $301 million (about N91.805 billion) for the acquisition of the 60 per cent shares of ExxonMobil in the company.
Nipco had executed a Sales and Purchase Agreement with ExxonMobil on Monday 17th October, 2016 for the acquisition of the 216,357,157 shares. And the Chairman/Managing Director of Mobil Oil Nigeria, Adetunji Oyebanji said Nipco is acquiring those shares for a consideration of $301 million subject to price adjustments for dividends and other factors.
The Managing Director of Nipco, Mr. Venkataraman Venkatapathy had said the company considered this acquisition an important synergy.
“It is part of our strategic move to support Nipco’s continuous growth and expansion of its Nigerian retail footprint. We are confident of adding tremendous value to Mobil Oil Nigeria and likewise Mobil Oil will add a huge value to Nipco. In furtherance of this value addition, Nipco will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under Branding Licence (s) from ExxonMobil,” he said.
According to him, Mobil Oil will continue to run as a separate, distinct and independent company, from Nipco Plc, each with its own CEO who will report to its board of directors .