Race to sell-offs for portfolio rebalancing ahead of the 2023 elections saw the shares of Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc in the past seven trading days losing N291.098 billion.
This is despite that the sector witnessed an improved performance in half year 2022; on various parameters like credit growth, asset quality, and profitability.
Pre-election years are usually characterized by negative sentiments which also result in the exit of foreign investors.
Breakdown of the losses
- Checks by Nairametrics showed that Dangote Cement Plc dropped by 5.33% to N245 per share; and N4.175 trillion in market capitalisation as at the close of trading on August 24th from N258.80 and N4.410 trillion; which were the opening share price and market capitalisation on 16th August.
- Lafarge Africa Plc followed with a decline of 3.81% to N24.00 per share and N386.587 billion; in market capitalisation from N24.95 per share and N401.889 billion in market capitalisation during the period under review.
- BUA Cement Plc trailed with a drop of 2.27% to N52.00 per share and N1.760 trillion in market capitalisation from share price of N53.20 and N1.801 trillion in market capitalisation at the commencement of the current year trading on August 16.