At the end of last week’s trading session in the Nigerian capital market, BUA Foods became the most capitalized consumer goods stock on the Nigerian Exchange
The most capitalized firm before that time, Nestle Nigeria Plc recorded depreciation in share price from N1,556.50 to N1,435 per share,
translating to a loss of N96.31 billion, taking the company’s market value to N1.14 trillion.
After appreciating by 24.10% during the week, from N53.2 per share to N66.00 per share, BUA Foods had gained a total of N230.40 billion, taking the company’s market value to N1.19 trillion.
Hence, BUA Foods Plc currently surpasses Nestle Nigeria Plc by N50 billion in market value, displacing Nestle Nigeria Plc to emerge as the most capitalized consumer goods company on the capital market.
Commenting on why investors are rallying on BUA Foods share a renowned market analyst, Opeyemi Dapo-Thomas, said the brand is witnessing such an immense rally as a result of its consolidation in the consumer goods market. Dapo-Thomas was speaking on a leading data-driven business platform, Nairametrics.
He said that the consumer goods company seems to be taking advantage of their customer segmentation and reducing costs which make the stock of the company attractive to investors, hence, the rally around the shares of the newly listed company.
It should be noted that The shares of Nestle Nig Plc have advanced by 1.41% from year-to-date, starting the year at N1,415 and currently traded at N1,435. However, the shares of the company have returned about 6.30% gains for investors who bought them at their 52-week low trading price of N1,350 per share.
In contrast, BUA Foods has appreciated by 65% from the day of listing at N40.00, currently traded at N66.00. The shares of BUA Foods have returned 63.98% gains for investors who bought the stock at its 52-week low trading price of N40.35.
Online business news platform, Nairametrics reveals that The Consumer Goods Index, which tracks the daily and weekly performance of quoted FMCG companies, depreciated by 4.35%, from 584.13 points the previous day, to 558.72 points, at the end of last week’s trading session.