NGX: How Geregu Power, Three Other Stocks Worth N17.48trn Traded Flat Since 2024
CHIGOZIE AMADI
As the initial enthusiasm that trailed its listing on the floor of the Nigerian Exchange Limited (NGX) wilts, Geregu Power Plc and three other blue-chip companies with varied concerns have been trading flat between December 2024 till date.
The others with a combine market capitalisation of N17.48 trillion are: BUA Cement Plc, Airtel Africa Plc and Seplat Energy Plc.
Amid demand by both foreign and domestic investors for these four stocks, their price remained flat.
Analysts attributed the factors to overprice and insufficient buy/sell powers to alter the price up or down, among other factors.
Since the beginning of 2024, Seplat Energy that is worth N3.35 trillion by market capitalisation on NGX remained flat at N5700 per share, while Airtel Africa worth N8.11 trillion by market capitalisation traded flat N2, 156.90 per share.
Geregu Power that is worth N2.88 trillin by market capitalisation closed February 21, 2025 at N1,150 per share and has remained flat since December 2024. In addition, BUA Cement with market capitalisation of N3.15 trillion, which closed February 21, 2025 at N93 per share has been trading flat since December 2024.
According to the NGX Rule Book, price movements on minimum quantity traded will change if an equity or security worth A: Fifty Thousand (50,000) units and Group B: Ten Thousand (10,000) units is traded.
The rule book added, “The price movement band on any given Trading day shall be determined as follows: (A) Group A: +/- 10% based on the previous day’s closing price and (B) Group B: +/- 10% based on the previous day’s closing price.”
Seplat Energy has remained at N5,700 per share despite its acquisition of Mobil Producing Nigeria Unlimited, which has led to a re-admission of its shares on the NGX and the London Stock Exchange (LSE).
This re-admission process can sometimes cause a temporary stabilisation in share prices as the market adjusts to the new developments.
For Airtel Africa, the telecommunication company engaged in a share buyback program, which concentrated its stock in the hands of a few shareholders. This has led to thin trading volumes and limited price movement.
Consequently, Airtel’s share price has remained static despite positive expectations following regulatory approval of a tariff hike for telecom operators,
Geregu Power, which was recently listed its shares on the NGX, added N2.5 trillion to the market capitalisation and boosted liquidity in the stock market. However, the stock has seen limited price movement since its listing as the market gauges its price.
For BUA Cement, it has experienced a significant decline in its stock price over the past year, and it has been influenced by broader economic concerns and sector-specific challenges, which have affected investor sentiment.
Additionally, BUA Cement’s high price-to-earnings (P/E) ratio of 74.35 reflects elevated investor expectations, which might be causing some investors to question whether there is room for further upside in the stock price.
Commenting, Investment Banker & Stockbroker, Mr. Tajudeen Olayinka explained, “There were no sufficient buy or sell powers to alter the prices of all the stocks. Even though, some investors must have traded at different prices with insufficient volumes to cause downward or upward price movement during the period. It is normal.”
The MD/CEO, Globalview Capital Limited, Mr. Aruna Kebira in a chat withTHISDAY said the stock price of BUA Cement is suffering on NGX.
According to him, Aliko Dangote-owner of Dangote Cement and Sugar Refinery and Abdulsamad Rabiu-owner of BUA Foods are fixated on their refineries, stressing that it is after they have settled with these refineries that their stock prices will begin to witness traffic and traction once again.
For Airtel Africa, he explained that the telecommunication giant had been on full bid since the announcement of an increase in network tariff, but no 100,000 units on both ways to close it.
Geregu Power, he added, is overpriced adding that the poor dividend declaration didn’t excite the market. “The stock price of Seplat Energy is a high cap stock. Where 100,000 units are not a piece of cake,” he added.
