Dangote Cement Plc became the most capitalized on NGX after its market capitalization rose to N6.15 trillion. The rise in the company’s market cap is on the back of a positive reaction to the company’s announcement of the Tranche I shares buyback program.
The share price of the cement giant gained 9.27% to close trading today at N360.7 per share with a market capitalization of N6.15 trillion.
Dangote Cement has now surpassed MTN Nigeria which was previously the most capitalized stock at N5.66 trillion.
The reason behind the stock rally
Recall that Nairametrics reported that Dangote Cement Plc had announced the commencement of the Tranche I shares buyback programme.
The Tranche I share back program entails that up to 168,735,593 fully paid-up ordinary shares of 50 Kobo each, representing 1% of the entire current issued shares will be repurchased.
The programme is scheduled to commence on the 17th of July 2023 and its duration is only for two days to be completed on the 18th of July 2023 or whenever the entire tranche size has been purchased.
In its audited financial statement for the year ended 31st December 2022, Dangote Cement declared a profit of N382 billion for the year compared to N364 billion the previous year.
Revenue for the period also improved by 16.9% to N1.618 trillion compared to the N1.384 trillion the previous year.
How equities performed
The equity market maintained its bullish trend as market capitalization increased by N580 billion to close the day’s trading session at N35.757 trillion.
The All Share Index closed trading at 65,669.29 as the index approaches the all-time high of 66,671 achieved on 5th March 2008.
The market’s positive momentum indicates strong confidence among investors and traders in the current economic outlook.
SWOOTs Watch
The cement sector performed well, with DANGOTE CEMENT and BUA CEMENT rising by 9.27% and 6.59% respectively.
However, the banking and telecom sectors declined, with UBA, ZENITH BANK, MTN NIGERIA, and GTCO losing 4.03%, 2.01%, 0.71%, and 0.28% respectively.
AIRTEL AFRICA and BUA FOODS remained unchanged today, with the same closing values as yesterday. These companies showed a stable market performance, reflecting a balanced demand and supply.