Airtel Africa Market Value Jumps to N6.64trn, Dangote Hits N5.06trn
Nigeria’s largest quoted company by market capitalisation, Airtel Africa, has jumped higher to N6.64 trillion after foreign investors deepen interest in the Telcos giant’s business.
The company is trailed by Dangote Cement Plc whose valuation settled at N5.061 trillion after a price decline at the last trading session in the week to N297 from N300. The stock had been on gaining streaks.
The steep gains recorded by the two top listed companies by market capitalisation have increased their respective influence as market movers on the local bourse. Market data shows that Airtel Africa and Dangote Cement Plc combined valuations account for more than 40% of Nigerian bourse capitalisation.
Some analysts said the core issue to address remains that these companies may have become out of reach for retail investors – characterised by relatively higher market prices and lower volume trade.
For portfolio building, these two companies’ stock isn’t good for retail investors after the share buyback programme that appears to have stemmed price movement. READ: Airtel Africa levels Up Earnings, Upgrades Dividend Despite FX Loss
While Airtel Africa and Dangote Cement shares are open to the upside with a low probability of price decline, they have become more closely held – the very essence of share buyback.
Last week, Airtel Africa saw its share price gaining more than 20% as the trading session ended positively. Market price then settled at N1,767:00 per share while total outstanding shares steadied at 3.758 billion.
It appears that investors reacted positively to the dividend announcement. Recall that Airtel Africa’s Board recently confirmed a final dividend of 3 cents per ordinary share which will be paid on or around 22 July 2022.
The company said in a statement that the Interim dividend will be paid in United States dollars, although Airtel Africa Plc offered its shareholders the opportunity to elect to receive their dividend payments in British pounds or Nigerian naira via currency elections.
On the local bourse, the recent rally has widened the gap between Airtel and Dangote Cement, a company that was previously most valuable in the domestic bourse.
Airtel Africa and Dangote Cement’s combined market valuation has inched up to N11.7 trillion. Meanwhile, the Nigerian Exchange equity market capitalisation ended at N29.157 trillion as about a N590 billion gain in the week.
Dangote Cement ended the week at N5.061 trillion in valuation on 17 billion outstanding shares, more than 85% of which are owned by Dangote Industries Limited.
With strong fundamentals, Sub-Saharan Africa’s largest cement producer has 51.6MTPA capacity across 10 countries. Dangote Industries Limited which owns 85.5% stake is expected to take the Lion share in dividend payment for 2022.
Trading activities on Dangote Cement will be minimal, thus open to the potential upside as a result of share repurchase. MarketForces Africa had reported that the company undertook share buyback to obtain the right price for listing on the London Stock Exchange. #Airtel Africa Market Value Jumps to N6.64trn, Dangote Hits N5.06trn
