BUA Cement Jumps after Launching Price War
The share price of BUA Cement Plc (Ticker: BUACEMENT) inched upward by the maximum daily allowable rate on Monday after the company launched a price war in October.
Its market price rose to N103.4, up by 10% after 812,401 shares traded. The Nigerian Exchange (NGX) valued the cement company more than N3.5 trillion yesterday.
On Friday, more than 45 million shares of the company exchanged hands in the local bourse.
The company which is one of the top members of the cement oligarchy reduced its price per bag, a move that some analysts said would trigger increased competition for consumers’ wallets.
“Nigerians are more price sensitive now, and when a company offers quality and low price, volume growth is assured. You don’t expect other cement company to fold their arms to this rude shock”, LSintelligence Associates said in a commentary note.
At the annual general meeting, the company obtained shareholders’ approval to cancel unissued shares of 6,135,645,940 ordinary shares of N0.50 each from the total existing shares. According to its regulatory filing, BUA Cement declared as 33,864,354,060 as issued share capital.