Dangote Cement Stock Gains N247.09 Billion in 7-Day
In the last 7 trading sessions, a major market mover and shaker, Dangote Cement (Ticker: DANGCEM) stock gains N247.085 billion in the Nigerian Exchange (NGX), closed the week at N230 per share.
After its earnings bumps, the cement company saw back-to-back analysts’ upgrades and buying ratings as the management renewed its share buyback program. Dangote Cement has renewed plan to to buy its share back from the local bourse after first attemp stalled.
Valued at N3.919 trillion on 17.040 billion outstanding shares, the cement company accounts for about a fifth of the Nigerian stock market valuation. Dangote Cement, along with four others trillion naira valuation gangs, often drive market performance.
Equity analysts said due to its heavy size in relations to the entire market, its movement determines – to a greater extent – stock market direction for each trading session.
Some analysts said it is better to see an upward swings on the ticker to drive market rally, saying anything below that means NGX would go southward.
On the price gains, the stock traded at N215.5 on June 03, from where it moved to N220. The cement company currently has more than 60% of total market share in the industry.
In 2021, for the first time, Dangote Cement breaks records as sales jumped above N1 trillion mark, driven by an increase in production volume amidst rising demand. DANGCEM left N220 per share on June 7 to N225 a day after from where it positioned for N230.
It was on Friday the stock market reversed bullish trend but Dangote cement stock stay firmed at N230 for the last three trading days in the week.
MTN Nigeria, the second largest listed company shed N44.80 billion at the same time to close at N3.311 trillion on Friday. The stock had peaked at N165 for five consecutive trading session before it plunged by N2.20 at the weekend.
BUA Cement valuation printed at N2.506 trillion on Friday. The stock price was stable at N74 for 7-trading session. In the cement oligarchs’ family, BUA has displaced Lafarge WAPCO in term of capacity after a massive capital spending to boost capacity.
Airtel Africa market value printed at N1.692 trillion, less than half of its direct competitor’s valuation on the local bourse. The stock was sold for N837 in the last 7-trading session on 3.758 billion total outstanding shares.
The company share is lower when compare with MTN Nigeria’s 20.355 billion outstanding shares on the local bourse.
The Telcos stock price earnings ratio and enterprise value to earnings before interest tax depreciation and amortisation shed further light on the stock when investors build an investment case.
For example, MTN Nigeria price earnings ratio of 14.8% would endear investors with short term return profile compare with Airtel 21.75% price earnings ratio.
“Generally speaking, the lower the P/E ratio is, the better it is for the business and for potential investors”.
Investors are willing to buy Nestlé Nigeria for N1.11 trillion on Friday. One thing about this company’s stock is that it is relatively scarce, with 792.656 million total outstanding share.
Of which, Nestle S.A, its parent company owns more than 70% as the multinational continues to ramp up more shares.
Nestle Nigeria stock traded at N1,400 for the last 7-trading days and it is the highest price stock on the local bourse for the week.
Dangote Cement Stock Gains N247.09 Billion in 7-Day
