If you hold Okomu Oil Palm or Presco, the July 21 trading session on the Nigerian Exchange delivered an uncomfortable surprise. Both stocks dropped sharply while the broader market climbed, raising fresh questions about where palm oil equities are headed next.
Okomu Oil fell 7.5% in a single session, sliding from ₦1,418 to ₦1,311.50, according to the NGX Daily Official List. Presco dropped even harder, shedding 10% to close at ₦2,070 from an opening price of ₦2,300 on the same day.
The broader NGX All-Share Index finished the session up 0.19% at 246,659.56 points, adding ₦307 billion to overall market capitalization, TheWILL reported. That divergence between a rising index and falling agricultural heavyweights tells a story worth unpacking.
Okomu Oil and Presco shed billions as buyers chase other sectors
Okomu Oil closed at ₦1,311.50 on July 21, well below its 52-week high of ₦1,765 reached in April and closer to its 52-week low of ₦950, the official list confirmed. The stock now trades roughly 25% below its peak, signaling that the selling pressure building since mid-April has not yet run its course.
Presco mirrored the damage, falling 10% to ₦2,070, one of its sharpest single-session percentage drops in recent months, trading data on the NGX showed. The stock remains within reach of its all-time high of ₦2,315.40, but the speed of the decline suggests profit-taking is accelerating.
Buying interest across the broader exchange concentrated in banking, industrial, and insurance counters, with 34 gainers outperforming 22 decliners on the session, Punch reported. That sector rotation left agriculture stocks exposed as capital flowed toward counters with stronger near-term catalysts.
Record 2025 earnings could not stop the palm oil selloff
The July 21 decline looks even more striking when set against the companies’ recent financial results, which rank among the strongest in their history. Okomu Oil posted 2025 revenue of ₦198.15 billion, a 52% increase from the previous year, Stock Analysis data showed, while pre-tax profit jumped 63.6% to ₦87.3 billion, Rio Times reported.
Palm oil stock earnings snapshot:
- Okomu Oil 2025 revenue: ₦198.15 billion, up 52% year-over-year (Stock Analysis)
- Presco 2025 revenue: ₦331.19 billion, up 59.61% year-over-year (Stock Analysis)
- Combined Q1 2026 pre-tax profit: ₦72.86 billion (Rio Times)
Presco’s numbers were equally impressive, with 2025 revenue reaching ₦331.19 billion and earnings surging 81.57% on the back of strong palm oil demand and its Ghanaian expansion, Stock Analysis data confirmed. The two companies earned a combined ₦72.86 billion in pre-tax profit during the first quarter of 2026 alone.
CardinalStone’s sell rating puts Okomu Oil’s valuation under scrutiny
Analysts at CardinalStone downgraded Okomu Oil to a “sell” rating in June 2026, setting a 12-month target price of ₦1,066.34, which sits roughly 18% below the July 21 closing price, Proshare reported. The firm cited earnings that underperformed relative to its previous forecasts for 2025 and 2026.
“I think profit will grow next year again, but the profit growth won’t be as significant as this year.” — Kayode Eseyin, lead consumer goods and agricultural sector analyst at CardinalStone, told BusinessDay in November 2025
The downgrade centered on valuation concerns, with CardinalStone noting Okomu trades at a trailing price-to-earnings ratio of 27.91 times, nearly double the Middle East and Africa peer average of 14.40 times, the report indicated. That premium left limited room for the stock to absorb any disappointment in upcoming quarterly results.
DLM Capital Group analyst Qudus Adebara also covers Okomu Oil and noted strong growth in palm oil production and improved pricing dynamics across core segments in the full-year 2025 results, Simply Wall St reported. The stock is currently tracked by three analysts, with views ranging from cautious to constructive depending on entry price assumptions.
Profit-taking and tight monetary policy cloud palm oil stock outlook
Cowry Asset Management noted that the broader NGX is expected to sustain positive momentum but cautioned that profit-taking in recently appreciated counters could temper the pace of recovery, THISDAY reported. Palm oil stocks, which delivered some of the strongest returns on the exchange in the first half of 2026, fall squarely into that category of appreciated counters.
The Central Bank of Nigeria’s Monetary Policy Committee held the benchmark interest rate steady at 26.50% following its July 21 meeting, retaining the cash reserve ratio at 45% for commercial banks, Business Post reported. That tight monetary stance keeps borrowing costs elevated and limits the liquidity available for equity market participation.
Bismarck Rewane, chief executive of Financial Derivatives Company, previously named Okomu Oil among his blue-chip picks for 2026, citing its scale, earnings visibility, and pricing power, Tribune Online reported. He cautioned, however, that timing and entry price remain critical, because interest rate trends and exchange rate stability will shape how much upside materializes.
Key takeaways from the July 21 palm oil stock selloff
- Okomu Oil closed at ₦1,311.50, down 7.5% on the session and 25% below its April 2026 all-time high of ₦1,765 (NGX Daily Official List)
- Presco fell 10% to ₦2,070, one of its sharpest single-session declines in recent months (NGX Daily Official List)
- The NGX All-Share Index rose 0.19% on the same day, indicating sector-specific selling rather than broad market weakness (TheWILL)
- CardinalStone maintains a sell rating on Okomu Oil with a ₦1,066.34 target price, citing stretched valuations (Proshare)
- The CBN held interest rates at 26.50% on July 21, keeping monetary conditions tight across the equity market (Business Post)
