Lafarge Africa Slumps by 10% as Investors Exit Positions
Cement company Lafarge Africa Plc lost about 10% of its market value due to heavy sell-offs on the Nigerian Exchange. The sell pressure aligned well with broader market direction, stockbrokers said, reflecting an ongoing market correction that has lasted for three days.
Trading data from the Nigerian Exchange (NGX) showed that Ticker: WAPCO slumped to N307.90 per share, with 2.899 million shares traded for N900.307 million, amid a broader downturn in the local bourse.
Lafarge Africa’s share price had been relatively stable over the last seven trading sessions at N342, following Q1 2026 earnings that propelled bargain hunting and triggered a re-rating.
The sell-off signalled intermittent profit-taking amid a broader stock market correction. The company is now trading behind its 52-week high in the Nigerian bourse.
At the close of the trading session on Wednesday, the market value of Lafarge Africa Plc’s 16.107 billion outstanding shares was valued at N4.959 trillion.
The cement company is now trading at a 12.5% discount below its highest valuation in the Nigerian market over the last 52 weeks. Stockbrokers anticipate healthy upside potential while awaiting fresh catalysts from Q2 earnings release to drive momentum.
Lafarge Africa maintained a favourable earnings momentum in Q1’26, partly benefiting from strong private and public sector demand, which drove cement volumes 10.9% higher year on year to 1.8 metric tonnes.
In addition, the bottom line was supported by favourable prices, strong emphasis on cost discipline, and sustainability initiatives. The impact of continued plant optimisation, favourable demand, and higher prices should continue to support performance in 2026, as analysts projected +58.3% earnings per share growth to N26.84.
CardinalStone Securities Limited said that in the subsequent year, the ongoing expansion project should create more legroom for cement volume growth and market share accretion.
Analysts anticipate that volume gains in subsequent years should also offset the CAPEX-driven cash flow drag in FY’26, with the projected cash balance rising at a cumulative average growth rate (CAGR) of 51.8% over the forecast horizon.
“Accounting for the company’s first capacity expansion in 10 years, assuming future cement price changes track long-run energy inflation, and leaving expectations of cost discipline unchanged, we arrive at a new 12-Month Target Price (TP) of N381.81 and a HOLD recommendation on the ticker”, CardinalStone Securities said. MTN Nigeria Declines by 7% on Significant Volume Action
