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Dangote Cement shares gain N605 billion in a week amid share buyback plans

Dangote Cement Plc shares gained N605 billion in just a week amid positive sentiment on the floor of the NSE.

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Dangote Cement Plc. appoints Ms. Berlina Moroole as non-Executive Director

Dangote Cement Plc shares gained N605 billion in just a week amid positive sentiment on the floor of the Nigerian Stock Exchange, following the news of the company’s share buyback plans.

This was uncovered by Nairametrics, after tracking the performance of the shares of Dangote Cement Plc on the floor of the Nigerian Stock Exchange, from last Friday, 18th December 2020 and Thursday, 24th December 2020.

The checks revealed that the 17,040,507,405 ordinary shares of the company have gained N604.94billion largely on the back of news of the company’s share buyback plans.

This means that the shares of the largest cement manufacturer, with a total installed production capacity of 48.6 million tonnes per annum, has increased by 16.945%, from N204.59 at the close of trade on Friday 18th December 2020 to N245 at the close of trade on Thursday 24th of December 2020.

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What you should know

  • Nairametrics reported on Monday that 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.
  • According to the information contained in the announcement issued by the company on Monday morning before trading hours, the approved brokers of the company under the Share Buy-Back Programme would purchase up to 85,202,537 fully paid-up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares of 17,040,507,404 ordinary shares.
  • In a follow up news report, Nairametrics reported on Monday that shares of Dangote Cement Plc gained 10% in the first one hour of trading, largely on the back of news of the company’s share buyback plans.
  • According to the report, checks by Nairametrics as of 11.30 am on Monday, 21 December 2020, revealed that bids of about 5.5 million shares were tabled without a single offer on the table.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

2 Comments

2 Comments

  1. Ade

    December 25, 2020 at 9:16 pm

    Hmmmmm….. I am wondering if APC Government is monitoring cement Business at all…
    How can a bag of Cement goes up to as much as #4500 ? I hope the leader of nigeria Economic Team didn’t know this Calamity

  2. Godspower

    December 26, 2020 at 5:30 am

    Why won’t they have much gain when they are enjoying monopoly from this govt at the expense of Nigerians. When GEJ was in power cement was #1500 but today is about #4500 as a result of monopoly and policies that favors him.

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A Joe Biden´s presidency and its impact on Nigeria’s oil

With Joe Biden’s imminent inauguration as the President of the US, his policy on energy and renewables could very well determine Nigeria´s prosperity for the next 4 years.

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Oil traders go bearish, Joe Biden seems more likely to win

A couple of months ago, I wrote on the impact of the Joe Biden Presidency on the oil markets. Now that he is President of the United States with his inauguration on the 20th of January, every country would go back to their political and foreign drawing boards to analyse the impact of his swearing-in on their respective economies or governments.

While some countries would face pressure from Biden in respect to their human rights issues, climate change policies and other diplomatic matters, countries like Nigeria will be analyzing the impact of Biden’s policies on the fate of Oil.

READ: AfDB supports Africa’s flagship climate initiative with $6.5bn 

Four standpoints are crucial here;

  • Will shale oil, which has been the albatross on the neck of oil prices for years, weaken in respect to Joe Biden and notably Kamala Harris’ views on fracking?
  • Will Joe Biden’s soft foreign policy on Iran enable Iranian oil to return to the market?
  • Will Joe Biden emulate Trump in meddling with OPEC+ affairs?

The answers to these three questions would give an outlook on the fate of Nigeria’s black gold.

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READ: Facebook suspends Donald Trump indefinitely

Shale oil

Over the years, the investment in the Shale industry in America has seen the United States increase oil production significantly. In understanding market dynamics, increased production of oil has a negative effect on oil prices. This is why we have not seen $100 oil in many years now.

An increase in US oil has significantly reduced OPEC+ market share and dominance in the oil markets. Historically OPEC could influence prices with their policies, but nowadays, US oil appears as a barrier in the oil markets.

READ: Mike Pence to go against Trump, announces he will attend inauguration

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The dominance of shale is enabled by a few factors. Firstly, Fracking. Fracking is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside. It is highly controversial as it threatens to cause pollution and is detrimental to climate change.

Now, climate change is at the forefront of Joe Biden’s energy policy. Inadvertently, it will hamper the production of fossil fuels in the long-run.

Additionally, Wall Street would be wary of investing in the oil and gas sector as the future looks more into renewable energy.

Iranian dilemma

Joe Biden’s relations with Iran would differ from Trump’s relationship with Tehran. While Donald Trump gave tough sanctions during his tenure, Biden would seek to pamper Iran just like Obama did and this will mean Iranian oil can come back to the market. Although private intelligence shows Iranian oil is still exchanged in the markets, this diplomatic relation would still be significant especially with Iran accounting for about 9.5% of the world’s total oil reserves.

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READ: Donald Trump and Joe Biden clash over plans to lift travel ban on UK, EU, Brazil

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Meddling with OPEC+

During Trump’s tenure, OPEC+ was rattled several times. Trump has never hidden his mistrust in OPEC. He has previously labeled them a cartel in the past. When oil prices go high and affect the cost of gasoline on American consumers, Trump calls out OPEC to find ways to reduce the prices.

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However, when prices are so low and energy companies in America can’t break even, Trump, like he did in April 2020, interferes and calls out OPEC to intervene. Interestingly, according to trumptwitterarchive.com, Donald Trump tweeted 271 times about “oil”; 70 about “OPEC”; 351 about “gas” (gasoline and natural gas); 68 about “Saudi Arabia”. It would be rare for Joe Biden to do the same thing as his style of governance will be seemingly different from Trump´s.

READ: FIRS hits 98% of target as it collects N4.95 trillion for 2020 fiscal year

Additionally, America as one of the largest consumers of oil will need to improve its demand overtime before supply outweighs demand as a result of the pandemic. How Joe Biden handles the pandemic would be significant in American demand. Would he endure lockdowns or not? That’s very important in the conversation on his impact on gasoline prices and demand.

Nigeria’s black gold – Oil, would be dependent on the future outlook of the oil market and Biden’s policies. It would be interesting to see if Biden would allow OPEC to seize market share from American oil. The first few years would be very important.

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Only 68.8% of Nigerians believe Covid-19 is real – SBM Intel

The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.

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As the country and indeed, the rest of the world continues to be ravaged by the pandemic, only 68.8% of Nigerians believe Covid-19 is real. While 39.9% of Nigerians say they will take the vaccine, 63.3% are opposed to another lockdown.

These and more details were disclosed by SBM Intel, a geopolitical research and strategic communications consulting firm in its recent Covid-19 report titled, ” Covid in Nigeria: The Second Wave”.

“The age demographics of the correspondents for the survey were chosen across a broad age category., “The majority of the respondents were between 28-40 years (36.7%) followed by those between 18-27 years (24.0%), then 41-55 years (22.2%) which represents the active (working) population. 9.5% of the respondents were older than 55 years, and a smaller percentage, 7.7% were younger than 18 years,” the report revealed.

If Corona is real…

  • The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.
  • Ekiti, Enugu, Kogi, Nasarawa, and Sokoto states had less than 50% of their respondents stating that the virus is real. These states have relatively low official death rates, Ekiti (7), Enugu (21), Kogi (2), Nasarawa (13) and Sokoto (20) compared to states with high death rates as Lagos (250), the FCT (106) and Edo (117).

An interviewee said: “The virus is real, but does not believe that it is present in Nigeria because people are not dying and they are not observing most of the precautions.”

  • The report disclosed that most people of all age categories don’t deny the existence of a virus, however, people who are older than 55 years have the highest percentage of respondents who are unsure of the existence of coronavirus, citing reduced social interactions and smaller circles which keeps them away from contact with infected persons.

If people are taking the right steps to prevent the virus

Despite the fact that over 68% of the respondents believe that the virus is real, 59.5% of the respondents representing a majority of the respondents do not think that people are taking the right measures to prevent COVID-19.

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  • “More interestingly, in some public institutions like banks and eateries where private security personnel enforces compliance with mask-wearing and hand sanitizing, people tend to comply just because such enforcement serves as an entry ticket. Researchers observed that once many people got into such premises, they took off their masks and started to flout other precautionary measures.

Covid-19 vaccinations 

  • “Only 39.9% of the respondents said they will take the vaccine. An almost equal proportion of respondents (35.9 %) said they will not take the vaccine which the government announced is to arrive in the country at the end of January, and 24.1% are unsure of their position at the moment.
  • Reasons for not wanting to receive the vaccine include mistrust with the government and religious beliefs.
  • “Some respondents held that it is a religious war to contaminate the children of God with evil substances. Some believe that the vaccines are a tool to depopulate Nigeria, while others expressed concern about the effectiveness ratio and the side-effects that the vaccine might have,” SBM said.

In case of another lockdown

  • 63.3% of Nigerians are opposed to another lockdown. The report cited the number is much lower than the past report which revealed 90.24% were opposed to the idea of another lockdown.
  • 15.1% are on the fence on this issue and only 21.6% of the respondents would support another lockdown.
  • Opposition to lockdowns was linked to economic and security impacts witnessed during the previous lockdown as the economy contracted to lead to unemployment and increased hardship for Nigerians.

What you should know 

  • Nairametrics reported that the Federal Government said that Nigeria is not contemplating another lockdown and urged Nigerians to ignore social media posts rumouring of the possibility of another lockdown.
  • President Muhammadu Buhari already disclosed in October 2020 that the Nigerian economy is too fragile to go into another lockdown.
  • Professor Julius Ihonvbere, Chairman, House Committee on Basic Education & Services, said the Federal and States governments should not impose a lockdown, but rather focus on serious control measures to help prevent the spread of the coronavirus.

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Coronavirus

Covid-19: Oxygen demand in Lagos State has risen 5 times – Sanwo-Olu

Governor Sanwo-Olu has lamented the rising second wave of the pandemic in Lagos as the demand for oxygen increases by 5 times.

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The Lagos State Governor, Babajide Sanwo-Olu has warned that the rising second wave of the pandemic in Lagos has seen the demand for oxygen rise 5 times from 70 six-litre cylinders per day to 350 six-litre cylinders at Yaba Mainland Hospital alone.

The Governor also urged that all malaria-like symptoms should henceforth be considered as COVID-19 virus infection unless and until proven not to be so.

This was disclosed in a statement released by the Lagos State Government on Tuesday.

READ: Covid-19: Nigeria needs serious controls not a second lockdown – House Committee on Education

“Over the last few weeks, the demands for oxygen has risen from 70 six-litre cylinders per day to 350 six-litre cylinders in our Yaba Mainland Hospital. This is projected to more than double to 750 six-cylinders, before the end of January 2021,” the Governor said.

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He added that the State Government has decentralized provision of oxygen and other services needed for Covid-19 patients, citing provision of oxygen kiosks.

“ln addition to providing oxygen at our isolation centres, the Lagos State Government has decentralized the availability of oxygen across the State through the provision of 10 oxygen and sampling kiosks. Oxygen therapy and other related services will be provided to patients that require them.

READ: NPHCDA to address infrastructural gaps in COVID-19 vaccine supply

“Five of these 10 oxygen centers have been commissioned while the remaining five will be ready for use within the next four weeks. It is our expectation that these sampling kiosks would be easily accessible to residents that require oxygen therapy at the level of LGAs as stabilization points prior to onward transmission to our Isolation centres, if required.

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“This strategy is to further increase the fighting chance of Lagos residents that have contracted the virus and require immediate oxygen therapy,” he stated.

READ: Nigerian government spends equivalent of 83% of revenue to service debt in 2020

The Governor said that Lagos is closely monitoring plans by the FG to acquire vaccines and said the State has also resumed discussion with potential manufacturers. He also said the State is building its own regulatory framework for vaccine distribution.

“We are closely monitoring ongoing action by the Federal Government to procure COVID-19 vaccines for use in Nigeria. We have also opened discussions with vaccine manufacturers so that when the vaccine comes eventually we can ensure that Lagosians are catered for.

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“In the meantime, we are developing a strategy that will articulate the criteria, guidelines and regulatory framework for providing and monitoring vaccinations in Lagos.

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“The Lagos State Government is actively partnering with the private sector in the management of the COVID-19 pandemic, in the areas of testing, oxygen deployment, as well as the clinical management of moderate to severe cases. These partnerships have helped enhance the State’s response to the ever-changing circumstances of the pandemic,” Sanwo-Olu added.

READ: Nigeria spends N29 trillion on recurrent (non-debt) expenditure in last 10 years

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What you should know 

  • The Lagos State Government earlier disclosed that its bed occupancy levels at its public and private COVID-19 care centres increased to 51 per cent.
  • The Federal Government also alerted Nigerians that hospitals across the country are running out of facilities to handle more serious cases of coronavirus infections as the virus is spreading fast with mild symptoms in some victims and severe illnesses and death in others.
  • Nairametrics recently reported that the Federal Government, through the Ministry of Finance, announced the sum of N10 billion for the production of vaccines in Nigeria, to fight the coronavirus.

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