BUA Foods Begins ‘Classy Adventure’ in Nigerian Equities Market
Successive rally of food producer, BUA Foods Plc, could push the company into the number one position on the Nigerian Exchange. Dangote Cement and Airtel Africa are the standing pole for the food company to achieve the feat.
But the two rarely shift, though when they do, it is always earth shaking movement –either to the left or the right – as both have limited their stock volatility with share repurchase programmes.
BUA Foods market valuation reached N7.108 trillion, beating its brother, BUA Cement to the game. The food producer share price increased from N379 to N394.9 in the market as investing bees swarmed on it with expectation of improved return after the company signed new deal to expand capacity.
MarketForces Africa reported that BUA Foods told the Nigerian Exchange it has signed an agreement with IMAS, a prominent Turkish flour milling equipment manufacturer, to build four (4) state-of-the-art wheat and flour milling factories with a cumulative milling capacity of 3200 tonnes per day.
BUA Cement has been spiraling lower, on the other hand, due to its unimpressive earnings performance. The cement industry appears to be plagued with multifaceted issues, even price hikes have not been able to push margin upward.
The cement stock worth N3.857 trillion in the equities market at the close of trading session on Monday. Comparing the BUA names, the cement stock market value is just 54% of BUA Foods, which has continued to uptrend.
It would be a classy adventure to see food producer becoming most valuable listed company on the Nigerian Exchange platform as market has seen some falling angels.
Airtel Africa has tasted the puri when it became the most valuable after strong rally while the telecom company bought out Nigerian minority shareholders. MTN Nigeria has been there during a good time when the naira devaluation was not on the government plate.
FBN Holdings has shared the taste and feeling of being number one in the equities market during competitive share acquisition among its shareholders with vested interest. It was more of a fight to becoming the Chairman of the oldest listed financial services group.
Dangote Cement Plc has seen mixed experience as number one stock on the Nigerian Exchange. The largest cement company has previously lost positions due to thin trading on its stocks that limit upside but only once in a while.
At the moment, Dangote Cement is holding sway with total market capitalisation of N9.0.65 trillion, followed by Airtel Africa, whose worth has been steadied at about N8.3 trillion in the market. #BUA Foods Begins ‘Classy Adventure’ in Nigerian Equities Market
