Bad Day For BUA Cement as Investors Lose N112 Billion in One Day
- Investors of BUA Cement, a major competitor of Dangote Cement, have made a colossal loss trading in their stocks
- The investors of the company lost about N112 billion in a single day of trading on the floor of the Nigerian Exchange Limited
- The firm’s share price dropped by 6.18 per cent to trade at N50.10 and ending and N1.697 trillion market capitalisation
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
It was a bad day for investors of BUA cement on Thursday, September 22, 2022, as they had billions wiped off the company's share price, losing a whopping N111.752 billion.
According to reports, the loss occurred despite the company witnessing an improved performance in its 2022 half-year result, which saw it record significant milestones in credit growth, asset quality and profitability.
Source: Getty Images
Company affected by negative sentiment
The company’s share price dropped by 6.18 per cent to trade at N50.10 per share and N1.697 trillion in market capitalisation as of the close of trading on Thursday, September 22, 2022, from N53.40 and N1.808 trillion, a share price and market cap of recorded the day before.
PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!
Market apathy has been heightened by insecurity and negative sentiments, resulting in the exit of investors and a few domestic investors being pessimistic.
Market watchers believe domestic investors’ views are usually weak as they seek to reduce their exposure to the markets, especially on the eve of an election year.
The impact of political tension usually generates negative market sentiments.
Domestic investors on the floor of the Nigerian Exchange Limited increased by N1.490 trillion as against N273.16 billion recorded by foreign investors in the first seven months of 2022.
Some investors flee, others remain pessimistic
A statement by the NGX said the domestic and foreign portfolio investments in July stood at N1.465 trillion in the first seven months of last year, while foreign transactions stood at N435 billion in the same period.
Domestic transactions on the NGX grew by 1.70 per cent, while foreign trades went down by 37.24 per cent.
Despite the July report showing that total transactions at the NGX declined by 35.36 per cent from N156.52 billion in June of 2022, the performance for September increased by 12.71 per cent, compared to the same period of last year.
Dangote now richer than over 30 African countries as price of Dangote Cement rises
Recall that Legit.ng reported that Africa’s richest man, Aliko Dangote’s worth has risen by N8.4 trillion due to recent demands for his cement unit, Dangote Cement and the recently completed fertilizer plant.
According to a Bloomberg's report, his wealth surged to $20.1 billion (N8.4 trillion) last Friday.
Bloomberg’s Billionaire Index put his networth at $26.27 billion (N11 trillion) which he achieved in 2014.
Source: Legit.ng
