Dangote, BUA Drag Total Value of Cement Stocks Down by N1.47trn
Due to price depreciations posted by Dangote and BUA Cement, trading data from the Nigerian Exchange (NGX) indicated that the total market value of cement firms in the local bourse declined by over N1.47 trillion week on week, primarily as a result of selling pressures on the industrial index.
The two leading cement companies recorded a significant valuation slump totalling N1.520 trillion week on week on the Nigerian Exchange, dwarfing the gain seen from Lafarge Africa’s positive price movement.
Last week, the stock fluctuated as Nigeria’s new capital gains tax distorted investors’ sentiment, leading to massive selloffs. While the market recovered after the authority clarification on implementation and possible review, the local bourse still lost N1.5 trillion week-on-week to close at N93.5 trillion.
The cement companies Dangote and BUA were the major drivers of total loss in the stock market. Offset by Signiant gain by Lafarge Africa in the week, the cement index net loss was N1.472 trillion week on week due to investors exiting their positions.
Dangote Cement Plc recorded the highest weekly loss, valued at N1.113 trillion, as the company share price declined by 10%. Dangote Cement, with 16.873 billion outstanding shares, was valued at N10.022 trillion on Friday, a significant discount below its highest value in 52 weeks.
The market value of BUA Cement Plc reduced by N406.372 billion in the market due to selloffs that plunged its share price to N168 on Friday from an opening price of N180.
With 33.864 billion outstanding shares on the Nigerian Exchange platform, BUA Cement lost about 6.67% of its market value, settling at N5.689 trillion on Friday. Lafarge Africa Plc bucked the trend as investors showed interest in the cement company’s shares despite downbeat sentiment in the local bourse.
The cement company with the lowest market share in relation to Dangote and BUA Cement gained N48.323 billion week on week as prices surged. Details from the Nigerian Exchange revealed that Lafarge Africa (Ticker: WAPCO) rose to N134 week-on-week from an opening price of N131.
With 16.107 billion outstanding shares, the Nigerian Exchange valued Lafarge Africa Plc at N2.158 trillion, 13.15% below its highest value in 52 weeks. MTN Nigeria Plunges by 10% to N9.01trn as Sentiment Fades
