Shares in BUA Cement Plc on the Nigerian Stock Exchange lost a total of N162.5 billion this week, as the shares of Nigeria’s second-largest cement manufacturer declined by N4.8 per share.
The N4.8 decline in BUA Cement’s share price led to the N162.55 billion loss in the market capitalization of the cement tiger.
This move can be linked to the sustained sell down in the market, as local investors cycle-out funds from the market in search of impressive yields in the fixed securities space.
This sentiment, however, has been heightened by the FG bond issuance programme, with the auction of the N150 billion bond this month reigniting concerns about stock valuations.
Data tracked this week up till the close of trade Friday revealed that the shares of BUA Cement declined by 6.42% or N4.8 to close lower at N69.95 per share.
This bearish move in the share price of BUACEMENT saw the market capitalization of the fourth most capitalized company on NSE decline from N2.531 trillion to N2.389 trillion.
What you should know
- The stock market was down for the 7th straight week, with the All-Share Index and Market Capitalization posting a loss of 0.69% to close the week at 38,382.39 points and N20.082 trillion respectively.
- The resultant effect of this is a loss of N139 billion in market capitalization, at the end of the week.
- The Industrial index to which BUA Cement belongs, dipped by 2.62% week to date, as of 19th March 2021, compared to the Nigerian Stock Exchange All Share Index -0.69%.
- The Industrial index is down by 8.73% YTD, while the All-share index is down 4.69% YTD.