With two days of trading on shares of Oando Plc after the Securities and Exchange Commission (SEC) dismissed the board over allegations of poor corporate governance and management infractions, the Oil & Gas major’s share price dropped by 20% from N4.65 per share on Friday 31 May 2019 to N3.80 per share on Monday 3 May 2019.
Chart 1 Oando Volume and Share Price Movement May 2-May
Source: NSE/ Proshare research
Since the development which saw the appointment of an interim management team headed by Mr. Mutiu Sunmonu, investors have shown weak sentiments towards the purchase of the stocks as it went on the heavy bid at the close of business on Monday 3 June 2019.
There were anxious reactions from market traders who adopted a ‘bearish’ orientation towards trading in the company’s shares with a strong offer to bid ratio, since the news of the SEC decision on Friday, 31 May 2019.
Market players will be watching the impact of the signalling effect of SEC action on Oando’s share price after the holidays.
Oando Plc, a leading indigenous energy and exploration company, is listed on the Johannesburg Stock Exchange (JSE) with a recent price of 27 South African Rand.