BUA Cement Trades at 38% Below 52-Week High after 2-day Selloffs
BUA Cement Plc market value dropped further on Monday as investors exited their positions after the company’s unimpressive earnings outing. The cement stock ended trading session at more than 38% discount to its 52-week high over two days sell pressure.
Investors reacted negatively after BUA Cement reported more than 46% year on year decrease in earnings per share (EPS) in the first half of 2024.
The earnings downhill was driven strong macroeconomic headwinds worsened by naira fluctuation. Inflation and interest rate also affected the company’s cost profile.
In the equities market, the sell-side pressure is hurting BUA Cement market valuation. The last two days selloffs have reduced the cement company market value below N4 trillion after trading steady for long period.
According to data from the Nigerian Exchange, BUA Cement Plc share price crashed again on Monday to N114.30 from N128.90 kobo at the beginning of trading sessions.
Price sank even with light volume of shares that exchange hands in the equities market, which suggest an exit of a minority interest given a huge shareholding belonging to the cement company chairman.
BUA Cement had fallen from its steady price position of N143.20. Overall, the company has lost more than 20.18% of its market value in two negative trading sessions.
At the current price, BUA Cement Plc is trading at 38.21% discount to its 52-week high. The cement company had reached N185 per share early in the year due to heavy buying moment.
However, it took no time before stock market price correction cause BUA to retrace. At the close of trading session on Monday, the market value of the cement company has declined to N3.870 trillion.
BUA Cement Plc saw a sharp decline in profitability in the first half of 2024, details from its unaudited financial statement published on the Nigerian Exchange platform has shown.
At the end of the first half, its net income declined by 46.2% to N34.25 billion from N63.62 billion in H1 2023. Earnings per share declined by 46.3% to N1.01 from N1.88 in H1 2023. #BUA Cement Trades at 38% Below 52-Week High after 2-day Selloffs
