Emmanuel OchayiGeregu Power Plc Leads Market Momentum
Geregu Power Plc, one of Nigeria’s major energy players, experienced a market rally over two consecutive days, with its stock price jumping by 15%.
From the start of trading on September 17, when shares traded at N1000, the stock price surged to close at N1,150 by September 18, creating a ripple effect across the Nigerian Exchange (NGX).
Join our WhatsApp Channel“Investors are clearly confident in the future of Geregu Power,” said a market analyst. “The recent movement shows strong market demand for energy stocks, especially with the upward trajectory in Geregu Power Plc shares.”
This two-day surge resulted in around N2.6 billion worth of shares being traded, with 2.48 million units changing hands, pushing the company’s market capitalisation to a massive N2.875 trillion.
Geregu Power Plc Ranks Sixth in NGX Capitalisation
With this rise, Geregu Power Plc now stands as the sixth most capitalised stock on the NGX, surpassing Transcorp Power and closing in on BUA Cement. The company, which has been relatively quiet in the market for most of the year, made this significant move after months of stagnation.
“Since March 2024, the market activity around Geregu Power Plc has been limited,” noted a stockbroker. “But this recent gain has drawn fresh attention, especially with its stock price now having increased by 188% from the N399 price it started the year with.”
Geregu Power Plc’s Role in NGX’s 0.79% Advance
The gains in Geregu Power Plc’s share price also contributed to the overall 0.79% increase seen in the Nigerian Exchange’s All-Share Index (ASI) between September 17 and 18. The ASI closed at 98,230.92 on September 18, the highest point since early August.
Several major stocks contributed to this bullish market movement, with FBN Holdings rising by 16.9%, maintaining its upward momentum following the offloading of FBN Quest. Honeywell Flour Mills also surged, with its share price jumping 20.76% over the same two-day period.
“FBN Holdings and Honeywell have been leading the charge in the market recently, but Geregu Power Plc’s movement is a standout. Its quick rise and large market cap are driving renewed interest in energy stocks,” said another market analyst.
Geregu Power Plc’s Share Price History
Since its listing on the NGX in October 2022, It has seen tremendous growth. Its share price has appreciated by an astounding 945.45%, with the company’s market capitalisation rising from N275 billion to N2.875 trillion today.
The stock crossed the N1 trillion mark on January 15, 2024, closing that day at a market capitalisation of N1.073 trillion. By March 4, its share price hit N1000, making it the third most expensive stock on the NGX, just behind Seplat Energy and Airtel Africa.
“The stock’s performance since listing is nothing short of remarkable,” said an investment expert. “Geregu Power Plc has solidified its position as a top player on the NGX, and investors are paying attention.”
Future Outlook for Geregu Power Plc
Geregu Power’s stock rise also came after its major shareholder, Femi Otedola, sold approximately N9.28 billion worth of shares in 2024 through his investment firm, Amperion Power. This move brought attention to the company, signalling a new phase of strategic investments.
“The sale of shares by Otedola didn’t hurt the company’s prospects,” explained a financial commentator. “In fact, it seems to have sparked a renewed interest in Geregu Power Plc, and its performance this week shows that investors see long-term potential.”
As Nigeria’s energy sector continues to evolve, many expect Geregu Power to play a pivotal role in driving growth. Investors are now closely watching the company’s next steps as it continues to climb the ranks of the most capitalised stocks on the NGX.
With this impressive performance, they have once again demonstrated its strength and ability to attract investor interest. As the market moves forward, many will continue to monitor the stock’s progress and its impact on the broader NGX market.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
