Valuations Decline as Selloffs Hit Dangote, BUA, MTN Nigeria

Valuations Decline as Selloffs Hit Dangote, BUA, MTN Nigeria

Nigerian exchange heavyweights and strongest market movers have been slammed with sell rating, according to stock market screened this week as the local bourse experienced seesaw movements.

Last week, the stock market traded in red, Dangote Cement, BUA and MTN Nigeria were not key contributors to the negative trading outing. Except for 0.4% price down in MTN Nigeria shares as market spots that the telecom company’s debt book is rising fast.

Dangote cement with market price of N245 as of Friday’s close worth N4.165 trillion while about 90% of its 17 billion outstanding shares were owned by Dangote Industries Limited.

The company’s share price has steadied over seven trading day sessions. Recently, the group was accused for non-payment for Obajana cement asset acquired in 2002. READ:Market Movers Valuations Unaltered as Stocks Bleed

However, the stock market has remained fuzzy and the possibility is that more of the cement company’s shares will be dumped if the uncommercial banter with Kogi State persist.

MTN Nigeria is also on selloffs mode, though the telecom company has maintained solid earnings records and its prospect appears even brighter. However, MTN Nigeria has raised its debt profile amidst rising interest in the local market.

As of Friday, its share price settled at N199 with N4. 051 trillion market capitalisation. Year to date, investment in MTN Nigeria shares has yielded 9.34%, though its market valuation inched lower 0.4% last week.

In recent time, BUA Cement has been cold, as the company’s earnings release in the second half of 2022 signal it is faced with market pressures.

BUA Cement lost 21.21% of its market valuation in the local bourse in 2022. The share of the cement industry’s key challenger was sold at N52 on Friday with a N1.761 trillion market capitalisation.

The three were accorded strong sell by equity analysts who think the market might have placed a higher value on them amidst the stock market rout. Last week, downward pricing on BUA Cement has been halted.

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