Dangote Cement Gains N3.896trn in 2 Days in Nigerian Market
Dangote Cement Plc gained about N3.9 trillion in the Nigerian stock market in two days, driven by pre-earnings sentiment and plans to list on the London Stock Exchange’s secondary market.
The cement group hit an all-time high on Tuesday ahead of the anticipated earnings release, which the market expected would drive a fresh re-rating.
The cement stock attracted strategic bets, with about 4.3 million shares traded on Tuesday, pushing the cement company to N1,341.90 per share, 10% gain from N1221.10 the previous day.
The share gained momentum following billionaire Femi Otedola’s plan to ramp up 5% of the group shares in its latest entry into the industrial sector
Market analysts said the rally is driven mainly by sentiment, expectations, and optimism about expansion. Since the beginning of the week, Dangote Cement Plc has gained 20.70% or N3.896 trillion following two maximum daily allowable positive price movements.
This was not its usual move; the cement company rarely shifts positions unless a major catalyst prompts it, suggesting Otedola may have started building positions.
The market value of Dangote Cement Plc’s 16.873 billion outstanding shares registered in the local exchange accelerated to N22.642 trillion, the highest in the local bourse.
Bloomberg reported that Dangote Cement plans to list on the London Stock Exchange in November, aiming to raise $1 billion by selling 10% of its founder holdings.
Dangote Industries holds roughly 87% of the company, leaving a tight public free float rate for public trading. #Dangote Cement Gains N3.896trn in 2 Days in Nigerian Market
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