Market Value of Airtel, BUA Foods, Stanbic, Others Depreciate by N135.42bn in February

.Airtel market capitalisation now N4.735trn .Dangote Cement adds N219.8bn

Kayode Tokede

On the backdrop of aggressive profit-taking by investors’, the market capitalisation of 10 top losers on the Nigerian Stock Exchange Limited (NGX) depreciated by N135.42billion in the month of February 2022, market data has revealed
Among the top losers on the Exchange in February are; Airtel Africa Plc, Okomu Oil Palm Plc, BUA Foods Plc, Vitafoam Nig Plc and Stanbic IBTC Holdings Plc

Others included; Ecobank Transnational Incorporated, Dangote Sugar Refinery Plc, Nigerian Brew. Plc, Ellah Lakes and Glaxo Smithkline Consumer Nigeria Plc.

THISDAY analysis of stock market data for the period under review showed that BUA Foods market value depreciated most, followed by Airtel Africa and Stanbic IBTC Holdings.

With 4.65 per cent or N3.00 decline in stock price in February, the market capitalisation of BUA Foods depreciated by about N54billion, while a drop of 0.87 per cent or N11.00 per share downsized Airtel Africa market capitalisation by N41.34billion in the month under review.

Despite dropping from N1,271.00 to N1,260.00 per share, Airtel Africa leads the market capitalisation of all listed companies on the bourse, covering 18.53 per cent or N4.735trillion of the entire N25.543 trillion of market capitalisation.

Analysts explained that price appreciation witnessed by BUA Foods and Airtel Africa since commencement of trading in 2022 led to investors’ profit-taking in February.

Commenting, the Vice president, Highcap Securities Limited, Mr. David Adnori said the price of Airtel Africa appreciated in January amid investors’ reaction to transactions the telecommunication carried out in East Africa that enhance the profitability of the company.

According to him, “There was a lot of exorbitant that moved the price of Airtel Africa and BUA Foods upward. Along the line, profit-taking has corrected the price to the normal price of both companies. Both companies are excellent in corporate earnings.
“BUA Foods when it was listed in January took the stock market by storm. The market was already waiting for the company to be listed and when it was listed, it was well accepted by both foreign and local investors. They priced the stock and it moved from N40 to N60 in a short period. Along the line, profit-taking has corrected the overvaluation and it has started to show its real value on the Exchange.On his part, analyst at PAC Holdings, Mr. Wole Adeyeye also collaborated with Adnori, stressing that investors’ profit-taking down the stock price of Airtel Africa and BUA […]

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