Price Appreciation in BUA Cement Lifts NGX Higher by N355bn
Price Movement: The Nigerian Exchange (NGX) recorded more than N355 billion daily gain on Monday as investors queued for BUA Cement shares. The market temperature became hot for the cement company’s share after its management slashed its price per bag.
A slew of analysts are projecting that BUA Cement’s latest price war would affect margin but volume sales is expected to grow strongly.
“Nigerians are more price sensitive these days, and when you see a company that isn’t doing bad in terms of quality offering price slash, rest assured that top line will grow strongly”, research analysts at LSintelligence Associates said in an email correspondence.
Data from the local exchange showed that market indicators grew by +0.97% as buying interest or the hot rally lifted year-to-date return near 31%, rising far ahead of an annual inflation rate of 25.8%.
The Nigerian Exchange All-Share Index added 646.76 basis points, representing an increase of +0.97% to close at 67,101.33 points. Then, Stockbrokers reported that year-to-date return rose to 30.93%.
In its daily equity note, Atlass Portfolios Limited said equities market activities were down, as the total volume and total value traded for the day reduced by -28.18% and -61.23% respectively.
Citing data from the domestic bourse, stockbrokers at the investment firm said approximately 268.66 million units valued at ₦3,463.66 million were transacted in 6,911 deals.
ABCTRANS was the most traded stock in terms of volume, accounting for 10.90% of the total volume of trades. This logistic operator was followed by ACCESSCORP (10.87%), OANDO (10.09%), UBA (8.85%), and TRANSCORP (8.84%) to complete the top 5 on the volume chart.
Based on its size advantage, ACCESSCORP was also the most traded stock in value terms, with 13.46% of the total value of trades on the exchange.
BUACEMENT topped the advancers’ chart with a price appreciation of 10.00 per cent, trailed by CHIPLC (9.80%), NB (+9.09%), JOHNHOLT (+8.11%), SUNUASSUR (+7.22%), and twenty others.
Twenty-three stocks depreciated, where PRESTIGE was the top loser, with a price depreciation of -10.00%. FTNCOCOA lost 8.33%, NEIMETH went down by 7.74%, INTBREW dipped by 4.17% NGXGROUP dropped by 4.04% while VITAFOAM bumped by 2.92%.
Due to the buying momentum, the market breadth closed positive, recording 25 gainers and 23 losers. In addition, the market sector performance closed positive. Trading results showed that four of the five major market sectors were up, led by the Industrial sector, which grew by +4.03%.
This was followed by the Insurance sector which recorded a 1.23% surge, the Consumer goods sector popped up by 0.78% and the Oil & Gas sector gained 0.36%. The Banking sector dropped by -0.44%
Overall, the equities market capitalisation advanced by ₦355.46 billion, representing a growth of +0.97%, to close at ₦36.87 trillion from ₦36.51 trillion last Friday. #Price Appreciation in BUA Cement Lifts NGX Higher by N355bn Naira Devaluation Deepens Economic Crisis in Nigeria
