Mixed Trade Keeps Dangote, BUA, Lafarge Market Value Steady at N16.7Trn
Dangote Cement Plc, BUA Cement and Lafarge Africa Plc combined market value has been steadied after their respective earnings releases over mixed trading pattern on the Nigerian Exchange.
According to data from the local bourse, the cement oligarchy was priced at N16.7 trillion, maintaining position as most valuable segment in the local bourse.
Based on their trading data, the cement companies share prices have been steadied due to low trading activities except for WAPCO with well diversified ownership interest.
Their recent financial scorecards showed that fast changing market dynamics, and tough macroeconomic conditions have a negative impacts on the cement oligarchy’s earnings in 2023.
However, analysts have projected that these companies would deliver an impressive earnings performance in 2024 as government ramped up spending on infrastructure projects.
Though these companies have some similarities, they are wide different in terms of ownership and strategic course or direction.
However, rivalry has been unimpressive as it appears they charge a kind of control prices in the retail segment. Attempt by BUA Cement to crash prices was met with
BUA Cement Plc has been flattish following its unimpressive earnings performance in the financial year 2023. The company’s share price steadied at N143. 20 over the last seven trading sessions on the Nigerian Exchange.
The cement stock is trading at 22.6% discount to its 52 week high. BUA Cement had peaked at N185 per share in the stock market before it spiraled downward.
Meanwhile, N83.15 was its lowest market price over the last 52 week. Compared with its share outstanding of 33.864 billion, BUA share volume that has been exchanging hands in the market has been very low.
This explained its stagnated market price movement as investors held their tight. BUA cement Plc ended the week at N4.849 trillion market value.
Lafarge WAPCO was priced higher in the stock market last week, gained 8.787% over five trading sessions. The cement company share price rose to N35.90 from N33 at the beginning of the week as a results of bargain hunting.
Ticker: WAPCO is trading at 29.60% discount to its 52 week high. According to data from the equities market, the cement company share price had peaked at N51, its 52 week high.
The lowest market price in the same period was N26.60. Lafarge WAPCO share price fluctuates in line with volume that exchanged hands in the local bourse last week. The cement company’s market valuation printed at N578.269 billion at the end of the week.
Dangote Cement Plc was flattish at N11.19 trillion in the stock market. The Nigerian largest cement company has become less volatile following its share buyback programme.
Compared with its 17.040 billion shares outstanding, trade volume has been miniscule, insufficient to move its market price down or upward. According to data from the Nigerian Exchange, Dangote Cement Plc’s share price ended the week at N656.7 on Friday.
It has stayed at this level for months, even after its earnings released and subsequent dividend declaration, about 90% of which flew to Dangote Industries Limited, a special purpose vehicle that owns significant interest in the cement company shares. #Mixed Trade Keeps Dangote, BUA, Lafarge Market Value Steady at N16.7Trn
