News in brief:
– NASCON Allied Plc and Dangote Sugar Refinery Plc stock prices continue to decline as Cadbury Nigeria also see its stock price fall after avoiding a loss the preceding week.
– BUA Foods stays resilient while Flour Mills recovers for second consecutive week while undergoing restucturing.
The bad run continues as the stock prices for NASCON Allied Plc and Dangote Sugar Refinery Plc fall by 10% and 11.11%, respectively, over the past week. It marks six consecutive weeks that the sugar processor has failed to record any appreciation on the Nigerian stock exchange (NGX) and eight weeks for its sister company.
One report blamed NASCON’s stock poor performance on investors dumping their shares despite the company reporting good numbers in 2023 and after it paid dividends. While the volume of shares traded this past week was a 3.776 million, the previous week saw a significant 17.091 million, which supports the theory of dumping shares.
In related news, the comapny’s group chairman, Aliko Dangote, has reportedly lost 30% of his net worth since the beginning of 2024 and now worth about $14.6 billion.
Cadbury Nigeria also saw its stock price fall by 4.41%, after avoiding a loss the preceding week. The chocolate maker has not seen an apreciation in over eight weeks, since the end of March 2024. It recently listed 402 million ordinary new shares of 50 Kobo each per share on the exchange platform. Cadbury Nigeria is facing off with foreign echange losses which have been blamed for its net loss of over ₦19 billion in 2023 and ₦7.3 billion in the first quarter (Q1) of 2024.
Meanwhile, Flour Mills Nigeria continued its road to recovering its March 2024 stock price of ₦39 after back to back positive performance leaves it at ₦38 per share. The company had encountered consecutive price drops of 13.6% and 9.76% in the middle of April 2024. The flour producer is undergoing some changes after a shareholders’ meeting resolution resulted in separating its packaging brand, Bagco, from the parent company.
BUA Foods remained unchanged again after yet another week as the food maker continues waxing strong on the stock market. It had reported a year-on-year post tax profit increase of 37.93% in Q1 2024.
Other consumer goods companies like Nestle Nigeria, Honeywell Allied Industries, Union Dicon Salt, and Nothern Nigeria Flour Mills posted no change in their stock price by the end of the week. However, the volume of shares traded fell again for the second week in a row as the end of the month draws closer.
