News in brief:
– Presco saw its stock price fall 8.33% on the NGX for the past week, with FTN Cocoa Processors suffering an 11.11% loss as well.
– Overall trading volume for the five agricultural companies on the NGX dropped significantly this week compared to the prior week.
For the week ending 17 May 2024, the stock price of Nigeria’s top oil processor, Preco Plc, fell by 8.33% on the Nigerian stock exchange (NGX). According to data gathered by The Junction’s analysts, the slump is the first one that the company is experiencing in over eight weeks.
The preceding week, Presco had recorded a spike in its stock price of up to 15.30%, which took it to ₦295.1 per share. With this latest drop, the shares are selling for ₦267.2 on the exchange platform, which is higher than the ₦231.5 value that it was at by mid March 2024.
Okomu Oil Palm, one of Presco’s rivals in Nigeria, avoided a loss for the third consecutive week as its stock price saw no changes. It had been one of the winners in the previous week.
Meanwhile, FTN Cocoa Processors, witnessed over 11% of its stock price fall during the period under consideration. It is now trading for less than what it began the month of April with after a 20% rise in the week ending 10 May 2024.
The cocoa producer had barely survived a difficult 2023, which saw it post zero revenue for the first time in more than a decade. It had reported significant hikes in after tax (₦431.19 million to ₦8.13 billion) and foreign exchange (₦13.30 million to ₦7.76 billion) losses this past year.
Among the agricultural producers on the NGX, Ellah Lakes posted the highest price appreciation (8.19%) in the past week. Although it is still trading a lesser than its pre-April priuce, the gain represents a recovery from its preceding week’s loss.
Livestock Feeds Plc also showed a significant recovery this past week to shake off the loss it suffered the week before. Its stock price is now only 2.29% less than its mid-March price.
Overall, the volume of stocks traded for the five agricultural producers this past week was more than 23.9 million, a significant drop from the 65.69 million traded in the week before it. The decrease activity could be as a result of wariness on the part of investors who are waiting for the right time to exit or enter a position. It could also be as a result of lack of news on the companies, which makes it difficult for traders to make decisions.
