Shares of three Dangote companies quoted on the floor of the Nigerian Exchange Group (NGX) recorded a combined gain of 34.55% during the year.
This resulted in investors of the companies gaining about N1.641 trillion at the close of trading on December 29th of December 2023.
The market sentiment for the companies which comprises Dangote Cement Plc, Dangote Sugar Plc, and Nascon Allied Industries Plc has remained resilient in the face of economic volatility.
Breakdown of the gains:
- Checks by Nairametrics showed Dangote Cement Plc closed its last trading day (Friday 29, December 2023) at N319.90 per share and N5.451 trillion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N261.00 per share and N4.447 trillion in market capitalization at the beginning of trading in January 2023, hence has earned a gain of N1.004 trillion or 22.56 % year to date.
- Also, Dangote Sugar Plc shares rose to N57.00 per share or N692.372 billion in market capitalization after the year’s trading from N16.05 per share or N194.957 billion at the beginning of trading, hence adding N497.415 billion or 255.14% to the market capitalization.
- Nascon Allied Industries Plc shares grew to N53.75 per share or N142.407 billion in market capitalization after the year’s trading from N11.10 per share or N29.408 billion at the beginning of trading, hence adding N112.999 billion or 384.24% to the market capitalization.
Market performance:
The Nigerian Exchange (NGX) Limited All-Share Index (ASI), rose by 45.9% to close at 74,773.77 points on Friday, December 29, 2023, from 51,251.06 points in 2022.
The positive market sentiment observed among investors can be attributed to various factors, with a key influence being the favourable policies implemented by President Bola Tinubu’s administration.
These policies encompass the removal of fuel subsidies, the rationalization of exchange rates, and the floating of the naira. Investors strategically positioned themselves, capitalizing on the recent record earnings posted by quoted firms.
Market analysts’ market outlook:
Mike Ezeh, the Chief Executive Officer of Crane Securities Limited, said, the emergence of President Bola Tinubu further energised the market since market participants have hope in his ability to rejig the economy and implement economy-friendly policies.
- “The elections came and were hitch-free against all unification of the multiple exchange rates, review of monetary and fiscal policies, a shake-up of major changes carried out at the apex bank and its overflow down to the deposit money banks across the country brought stability to the market.
- “The commissioning of the first indigenous private refinery which has a cyclical effect on both upstream and downstream operations of petroleum companies quoted in the market propelled the interplay in the market by some high-net-worth investors on many quoted companies resulting in high turnover in trading volumes of those companies leading to the significant increase in market capitalisation within the period.”
He urged the new government in 2024 to continue to implement policies that would provide an enabling environment for businesses to thrive, saying this would help boost the nation’s Foreign Direct Investment (FDI) and attract issuers to the capital market.
Commenting, Tajudeen Olayinka, Analyst and CEO, of Wyoming Capital and Partners said:
- “The stock market has been quite eventful and bullish in 2023, and can reasonably project further improvement in 2024, as more companies approach the market for listing and public offerings.
- The fact that government will depend largely on the use of private capital in addressing infrastructure deficit, means that we will see a better capital market.”
