Investors in one of Nigeria’s largest consumer goods companies by market capitalization, BUA Foods Plc, are on track to record their first trading losses since it was listed over two weeks ago.
A look at the performance of the stock in mid-day trading reveals the share price has lost 6.6% in value as there are about 2.2 million units on offer as against 342.6k units on bid which in trading terms is a net offer.
Net offers often signify a likely dip in prices as it means there are more sellers of a stock than buyers and in tune with the forces of demand and supply mostly leading to a dip in price.
Despite the drop, BUA Foods still has a market valuation of N1.13 trillion and is now slightly behind Nestle as the most capitalized consumer goods company on the Nigerian Stock Exchange.
What you should know
- Week-on-Week, BUA Foods Plc appreciated by 24% from N53.20 per share in the previous week, to N66.00 per share at the end of the trading week.
- It led the top gainers chart last week gaining about 24%.
- The rally in the shares of the consumer goods company raised the market capitalization past N1 trillion during the week, making BUA Foods part of the classification of the SWOOTs, i.e, Stocks Worth Over a Trillion.
- Conclusively, during the week, the market cap grew from N957.60 billion to N1.19 trillion, to gain a total of N230 billion.