Conoil shares is not one of those stocks that typically witness significant volumes being traded. The share price can trade volumes as low as 218 units or just N5,000. However, when the share price embarks on bull run our analysts take note
The share price has gained every single day for the last 5 days gaining over 30 percent within that period. It’s quite remarkable as over 1.5 million units of the shares have exchanged hands. Conoil has now risen from about N16 per share to about N21 per share. In fact, it has not lost since it last dropped on April 18 where it lost about 9 percent. So what is reason for this bull ride?
The company a few weeks ago announced the resignation of its acting Managing Director Mr Charles Uwachei and appointed Tejbir Sawhney (an Indian) as acting Managing Director of the oil company. This announcement was made at a board meeting dated April 16th 2016 and published by the Nigerian Stock Exchange. The share price lost 9% after that day and remained flat up till the 5th of May before it commenced the bull run. We don’t see any connection here but then you never know.
Another possible reason that could however be attributed to the rise in its share price is the 2015 full year results that is yet to be published. The company is yet to publish its results and as is typical with this market, a few people may have information about the result that could influence the share price. While this is hard to prove, experienced investors in the stock market are used to seeing rallies like this being followed by a release of results that excite investors.
This is mere speculation and may not be the reason and for all you know could just be someone trying to set up a bull trap for un-looking investors. Its 2015 third quarter results saw pre-tax profits drop from N2 billion to N1.7 billion.