Diverse Trading Puts Dangote, BUA And Lafarge Market Values At N16.7Trn

FG Must Curb Monopoly In Cement Industry

Following their individual earnings reports, the combined market values of Dangote Cement Plc, BUA Cement, and Lafarge Africa Plc have stabilized despite inconsistent trading on the Nigerian Exchange.

The local bourse’s data indicates that the cement oligarchy was valued at N16.7 trillion, retaining its position as the most valuable category. According to their trade statistics, the share prices of cement businesses have been stable because there hasn’t been much trading activity, with the exception of WAPCO, which has a well-diversified ownership stake.

According to its most current financial scorecards, the cement oligarchy’s profitability in 2023 will be negatively impacted by rapidly shifting market dynamics and challenging macroeconomic circumstances.

Analysts, however, predicted that these businesses would post strong earnings in 2024 as government spending increased on infrastructure projects.

Though these companies have some similarities, they are vastly different in terms of ownership and strategic course or direction. However, rivalry has been unimpressive, as it appears they charge a kind of control price in the retail segment. An attempt by BUA Cement to crash prices was met with

BUA Cement Plc has been flattish following its unimpressive earnings performance in the financial year 2023. The company’s share price steadied at N143.20 over the last seven trading sessions on the Nigerian Exchange. The cement stock is trading at a 22.6% discount to its 52-week high. BUA Cement had peaked at N185 per share in the stock market before it spiraled downward.

Meanwhile, N83.15 was its lowest market price over the last 52 weeks. Compared with its share outstanding of $33.864 billion, BUA’s share volume that has been exchanging hands in the market has been very low. This explained its stagnated market price movement as investors held tight. BUA Cement Plc ended the week at N4.849 trillion in market value.

Lafarge WAPCO, which was priced higher in the stock market last week, gained 8.787% over five trading sessions. The cement company share price rose to N35.90 from N33 at the beginning of the week as a result of bargain hunting. Ticker: WAPCO is trading at a 29.60% discount to its 52-week high. According to data from the equities market, the cement company share price had peaked at N51, its 52-week high. 

The lowest market price in the same period was N26.60. Lafarge WAPCO share price fluctuates in line with volume that exchanged hands in the local bourse last week. The cement company’s market valuation was N578.269 billion at the end of the week.

Dangote Cement Plc was flattish at N11.19 trillion in the stock market. The Nigerian largest cement company has become less volatile following its share buyback program.

Compared with its 17.040 billion shares outstanding, trade volume has been miniscule, insufficient to move its market price down or upward. According to data from the Nigerian Exchange, Dangote Cement Plc’s share price ended the week at N656.7 on Friday.

It has stayed at this level for months, even after its earnings release and subsequent dividend declaration, about 90% of which flew to Dangote Industries Limited, a special-purpose vehicle that owns significant interest in the cement company shares.

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