As a result of significant purchasing activity that began in January, Dangote Cement Plc has exceeded N13 trillion in market valuation, making it the first company of its sort on the Nigerian Exchange. The rerating occurs prior to the cement company’s 2023 fourth quarter earnings announcement.
Dangote Cement Plc’s outstanding shares, valued at N13.001 trillion, have increased to 17.040 billion, according to data from the local exchange. On Monday, the company’s unit price surged to N763. The market is anticipating strong earnings ahead of the announcement of the audited results for the financial year 2023, thus more rises in the stock are expected.
With an early disclosure of the closed period, Dangote Cement reduced the likelihood of insider trading. Femi Otedola’s choice to buy the company’s stock contributed to the current interest in it. Dangote Industries Limited remains a major shareholder in the cement names following a rapid share buyback programme.
Broadstreet analysts stated that the company’s share repurchase programme was initiated as the group plan to list the cement company on the London Stock Exchange.
Rather than improved market fundamentals, the ongoing positive price movements in the local bourse have been fuelled by investors’ sentiments. While undervalued stocks are getting rerated, some listed companies with near-zero fundamentals have been climbing.
A slew of stockbrokers and market analysts think the Nigerian Exchange is already overvalued. They are looking forward to market corrections when earnings and dividend declaration festival on the Nigerian Exchange kick starts.
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