BUA Cement, Cadbury and Vitafoam make stocks to watch this week

BUA Cement, Cadbury and Vitafoam made it into the stocks to watch this week, as trading resumes in the Nigerian Stock Exchange.

Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.

Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.

BUA Cement

BUA Cement shareholders lost -10.39% of their investment last week, after investors’ confidence towards the manufacturing company dropped, triggering a sell off that depreciated the value of the firm’s share.

After five days of trading, BUA Cement shares fell to N47.85kobo on Friday, in contrast to the N53.40kobo it opened last week with, indicating investors were only willing to buy BUA shares at a discounted price.

This led to a loss of N187.94 billion in investment value held by shareholders, after BUA Cement’s equity capitalisation fell to N1.62 trillion, from N1.80 trillion. As a result, bearish sentiments hovers above BUA Cement as the capital market resumes this week, so trading with caution is advisable.

Cadbury

Shareholders of Cadbury also shared similar fate with BUA Cement investors, as the chocolate company’s market valuation depreciated from N25.82 billion, to 22.25 billion.

The decline in Cadbury’s market capitalisation was driven by sell off, which in turn, caused the company’s shareholders to lose N3.56 billion within five days of trading last week.

Read also: MTN Nigeria, Access Bank and FCMB make stocks to watch list

According to market data, the sell off dragged down the stock value of Cadbury by -13.82%, knocking it down to N11.85kobo per share, from N13.75kobo. So, Cadbury will be opening this week’s trading from the losers’ position.

Vitafoam

While BUA Cement and Cadbury ended last week among the losers list, Vitafoam handed its shareholders a whopping N3.06 billion at the end of trading last week, reflecting investors high appetite for Vitafoam’s shares.

The foam company recorded high demand for its shares, resulting to Vitafoam’s shareholders’ investment rising by 12.25% after five days of stock market activities.

Due to the stock market’s increased interest in Vitafoam, the price of the company’s stock rose from N20 per share to N22.45kobo per share, indicating investors were willing to pay N2.45kobo more to lay their hands on the firm’s stock.

However, while Vitafoam enjoyed a significant appreciation in its share last week, it exposes the company to profit-taking among shareholders who have concerns that the equity could fall.

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