The shares of BUA Cement Plc have gained N618 billion since the opening of trade on the Nigerian Stock Exchange for Q4 2020, as investors position for the shares owing to its relative valuation and impressive growth prospects.
This was uncovered by Nairametrics after tracking the performance of the shares of BUA Cement Plc on the floor of the Nigerian Stock Exchange, since October 2nd, 2020 when the market opened for trade for Q4 2020.
The checks revealed that the company has gained N618,024,461,595.00 largely on the back of the increased liquidity from local investors, who found the shares of BUA Cement impressive and chose to invest in the market amidst depressed yields in the fixed income space.
It is important to note that the change in investors’ sentiment driven by the depressed yields in the fixed income space which led to the massive buy pressures on the local bourse, has seen the market capitalization increase from N1.41 trillion to N2.03 trillion.
This means that the market value of the 33,864,354,060 issued ordinary shares of BUA Cement has increased by 43.83% between October 2, 2020 and December 24, 2020.
However, in monetary terms, the shares have increased from N41.75 to N60.00 during the period under review. This translates to a gain of N18.25 per share.
What you should know
- According to data tracked and analysed by Nairalytics, the research arm of Nairametrics, BUA Cement remains the fourth most capitalized company on the Nigerian Stock Exchange, with a market capitalization of N2.03 trillion.
- The Cement manufacturer stands ahead of Nestle with a market capitalization of N1.2 trillion, and behind Airtel, a telecommunication behemoth that maintains a market capitalization of N3.2 trillion.
- For valuation and profitability, the company stays ahead of Lafarge Africa Plc, another important player in the cement sector, and behind Dangote Cement Plc, the industry leader.
- In terms of operational rigour and built-up production infrastructure, Lafarge Africa Plc is the second-largest cement manufacturer in Nigeria, with a total installed capacity of 10.5 million mtpa, while Dangote Cement leads the park with the total national installed capacity of 29.25 million mtpa.
- Nairametrics reported last week that the Management of BUA Cement Plc had signed a contract for the construction of additional three production plants, with an installed capacity of 3 million metric tonnes per annum each.
- These additional production plants are expected to add to the robust infrastructure of the cement manufacturer. Nairametrics noted that when completed in 2022, in addition with its 3rd cement line of 3millon mtpa in Sokoto, booked for commissioning in mid-2021, the total installed cement production capacity of the company will increase from 8 million mtpa to 20 million mtpa.
- Thus, putting the company ahead of Lafarge as the second-largest cement manufacturer in Nigeria.
CitiTrust Financial Services Limited invests N395.9 million in additional LivingTrust Mortgage shares
CitiTrust has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank.
CitiTrust Financial Services Limited has disclosed that it has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank (formerly known as Omoluabi Mortgage Bank) shares.
This is according to a disclosure signed by the firm’s secretary, Olabisi Fayombo, and sent to the Nigerian Stock Exchange, as seen by Nairametrics.
The breakdown of the transaction revealed that a total of N359.9 million were spent for the purchase of an additional 659,750,000 units at N0.60 per share, and on two different occasions, i.e., 18th and 19th of January, 2021.
Recall that in 2019, CitiTrust Financial Services (CFS) Group Plc became the majority shareholder in LivingTrust Mortgage Bank, after investing heavily into the bank, preparing the stage for the bank to be more efficient and competitive.
What you should know:
- Nairametrics earlier reported a much more improved revenue of N192 million for LivingTrust Mortgage Bank in its last reported financials-Q3, 2020.
- In 2014, LivingTrust listed its shares on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange and thus became the first company to do so.
- The transaction might be an indicator of increased investors’ confidence in the firm’s future and potentials.
- LivingTrust Mortgage Bank shares closed trading for the week at N0.60
UBA, WAPCO, NEM drop amid profit-taking
Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers.
Nigerian stocks ended the week on a bearish note as the All Share Index declined further by -0.24% today to close at 41,001.99 from 41,099.15 index points.
- Year-to-date and market capitalization similarly fell by -0.24% to settle at 1.82%, and N21.44 trillion respectively.
- A total volume of 591.4 million units of shares, valued at N5.07 billion exchanged hands in 5,767 deals. TRANSCORP (-1.72%) was the most traded shares by volume at 169.2 million units, while ZENITHBANK topped by value at N681 million.
- Market sentiment, as measured by the market breadth, closed negative as 33 stocks lost, relative to 21 gainers. LIVESTOCK (-10.00%) led the laggards today, while NCR (+9.86%) topped the gainers’ list.
- With losses recorded in all sectors, except for the consumer goods sector which advanced by +0.06%, the NSE banking, oil & gas, industrials, and insurance sectors fell by 0.17%, 0.29%, 0.50%, and 7.93%, respectively.
- NCR up 9.86% to close at N3.12
- CUTIX up 9.71% to close at N2.26
- CHAMPION up 9.55% to close at N1.95
- REDSTAREX up 3.03% to close at N3.4
- FLOURMILL up 1.27% to close at N32
- LIVESTOCK down 10.00% to close at N2.52
- MRS down 9.68% to close at N11.2
- NEM down 9.67% to close at N2.43
- WAPCO down 6.98% to close at N26
- UBA down 2.79% to close at N8.7
Nigerian stocks ended the last trading session on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation in large and medium capitalized stocks amongst which are; MRS Oil Nigeria, WAPCO, Lafarge, NEM, and UBA.
- That said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum
Unilever Overseas Holdings acquires N352 million worth of shares of Nigerian subsidiary
Over 27 million shares of Unilever Nigeria Plc has been acquired by Unilever Overseas Holdings.
Unilever Overseas Holdings, the parent company of Unilever Nigeria Plc, has acquired over 27 million shares of its Nigerian Subsidiary, worth N352,036,698.
This is according to a “Notification of Share Dealing by an Insider” signed by the Company Secretary, Abidemi Ademola, and published on the NSE website.
It is important to note that the notification is compliant with The Exchange’s policy on insider dealing.
The statement revealed that the parent company increased stakes in its Nigerian subsidiary with the acquisition of 27,079,746 additional units of the company’s shares, in a single transaction, at an average share price of N13 per share.
This puts the total consideration for the shares purchased by Unilever Overseas Holdings on the 11th of January 2021 at N352,036,698.
Why this matters
- Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company, this is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
- The purchase of the shares of Unilever Nigeria Plc further cements Unilever Overseas Holdings’ position as a substantial shareholder of the company.
What you should know
- It is important to note that as of 30th September 2020, Unilever Overseas directly owned 74.03% of the 5,745,005,417 issued and fully paid shares of Unilever Nigeria Plc.
- However, with the recent purchase, Uniliver Nigeria Plc is still compliant with the Free float requirement for the Main Board of the Nigerian Stock Exchange.