Shares of Dangote Cement Plc has gained 10% in the first one hour of trading largely on the back of news of the company’s share buyback plans.
Dangote Cement Plc announced the commencement of its share buy-back programme, under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP, held on 21 January 2020. This announcement was made in a notification issued this morning, the 21 December, before the opening of the stock market.
Checks by Nairametrics as of 11.30 am today confirm about bids for 5.5 million shares have been tabled without a single offer on the table. Just like it is with demand and supply of any product, whenever a stock has more bids compared to offers (net bid) the share price is more than likely to be higher. See snapshot below
According to the data above, Dangote Cement shares have already crossed at a price of N230.4 per share with 1.8 million units crossing hands. Before today, Dangote Cement’s highest share price was N209.5 per share and was among the top ten stocks last week after gaining 14.48%.
The stock is likely to close today at 10% even though we do not expect a significant volume of trades today.
Read more details of the share buyback at Nairametrics.