Dangote Cement Sheds Weight, Down by 10%
Dangote Cement Plc a top member of the Nigeria cement oligarchs, hit N13 trillion in market valuation following Femi Otedola’s raft of shares purchases in the company.
The company accelerated to near sky-high and then flattened as the market temperature cooled off. As of Friday’s close, the cement company has fallen to N11.5 trillion before its earnings release.
Its share price rose to N763 ahead of the company’s final quarter of 2023 earnings release. It ended last week at N686.70 per share due to selloffs.
The cement company is expected to release its financial scorecard for last year. Share price volatility has reduced to moderate after a successful share buyback from the market in July 2023.
The cement company controls some 60%market share with a strong influence to set the market on the desired trajectory. Its immediate rival BUA Cement, in a move to trigger price, cut its cement price.
However, other members of the cement oligarchs ignore BUA Cement, seeing its price cut as shown to merely attract attention. It happened that BUA has no such capacity to wage a price war and Dangote isn’t interested in a price cut despite a strong margin.
Dangote Cement remains the most valuable company listed on the Nigerian exchange, a feat achieved due to strong earnings history and steady dividend payments.
However, high leverage and exchange rate fluctuations are major headwinds facing the company. The company has been affected by FX losses due to the continuous decline in currency in its African markets. #Dangote Cement Sheds Weight, Down by 10%
We’ll not Rest Until we Bring Succour to Nigerians – Tinubu
