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BUA Foods faces first price drop as investors put over 2 million shares up for sale

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 going public more than two weeks ago.

A look at the stock’s mid-day performance reveals that the stock price has lost 6.6% in value, as there are approximately 2.2 million units on offer versus 342.6k units in supply, which in commercial terms is a net supply.

Sharp bids often mean that prices are likely to fall, as it means there are more sellers of a stock than buyers and in sync with the forces of demand and supply, mainly causing prices to fall. price.

Despite the drop, BUA Foods still has a market valuation of N1.13 trillion and is now slightly behind Nestlé as the most capitalized consumer goods company on the Nigerian stock exchange.

What you should know

  • Week on week, BUA Foods Plc appreciated 24% from N53.20 per share the previous week to N66.00 per share at the end of the trading week.
  • He topped the top earners chart last week, earning around 24%.
  • The rally in the consumer goods company’s shares pushed the market capitalization past N1 trillion over the week, making BUA Foods part of the SWOOT classification i.e. stocks worth more than a trillion.
  • In conclusion, during the week, the market capitalization fell from 957.60 billion naira to 1.19 trillion naira, for a total of 230 billion naira.