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.
BUA Cement Plc’s share price at the close of trading dropped by 6.18% to N50.10 per share and N1.697 trillion in market capitalization as of the close of trading yesterday (September 22nd) from N53.40 and N1.808 trillion, which were the share price and market capitalization recorded the previous day (September 21st ).
Build up to 2023 elections: Why investors should embrace low price stocks with strong fundamentals
Uncertainty over the 2023 elections and heightened insecurity, lingering ASUU strike has increased market apathy and negative sentiments, which has also resulted in the exit of some foreign investors and left the few domestic ones hanging on the sideline.
Market experts believe that domestic Investors’ sentiment is usually weak as they seek to reduce their market exposure when elections draw closer. The intensity of the impact is usually a function of the degree of political tension and uncertainty generated by political activities.
The total transactions done by domestic investors on the floor of the Nigerian Exchange Limited (NGX) grew by N1.490 trillion, as against N273.16 billion recorded by foreign investors in the first seven months of 2022.
According to a statement from the NGX, the domestic and foreign portfolio investments (FPI) July 2022 report, which captured these transactions as well as trading figures from market operators, domestic transactions stood at N1.465 trillion in the first seven months of 2021, while foreign transactions stood at N435 billion in the same period.
This meant that total domestic transactions on the NGX grew by 1.70% while foreign transactions dropped by 37.24%. Although the July report revealed that total transactions at the nation’s bourse decreased by 35.36% from N156.52billion (about $371.53million) in June 2022 to N101.18 billion (about $236.86 million) in July 2022, the performance of the current month, however, when compared to the performance in July 2021 (N89.77 billion), total transactions increased by 12.71%.