Nigerian stock market daily report: Bull run continues on the back of Dangote Cement Plc

The bull run happening on the Nigerian Exchange continued on Monday on the back of gains in the share price of Dangote Cement Plc (NGX: DANGCEM).

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Share price of the cement manufacturer rose by 9.99% on Monday to ₦592.60. Year-to-date, the share price has risen by 85.23%, putting it back on top of companies listed on the Exchange by Market capitalization, and also making it the first company to achieve a market capitalization of ₦10 trillion.

The rise in the share price of Dangote Cement may be related to the acquisition of the stocks by Nigerian billionaire investor and Chairman of Geregu Power Plc (NGX: GEREGU), Femi Otedola.

In an Investogist report on Monday, Femi Otedola disclosed his reason for acquiring the shares of Dangote Cement. He expressed his confidence in the company’s “potential to propel Nigeria’s and Africa’s industrial and economic development.”

“Dangote Cement’s unique positions with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice,” he said.

“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success,” Otedola stated.

Activity Level

The activity level waned on Monday as the volume and value of shares trading decreasing.

The volume of shares and value of shares traded decreased by 18.39% and 4.23% respectively, while the number of deals done also increased by 4.23%.

By the end of trading, 721.81 million shares valued at ₦14.40 billion had exchanged hands in 15,757 deals.

Shares of Transnational Corporation Plc (NGX: TRANSCORP), Veritas Kapital Assurance Plc (NGX: VERITASKAP) and Access Holdings Plc (NGX: ACCESSCORP) were the most traded stocks by volume with 66.52 million, 47.00 million and 40.00 million shares respectively.

Shares of Nestle Nigeria Plc (NGX: NESTLE), MTN Nigeria Communications Plc (NGX: MTNN) and Transnational Corporation Plc (NGX: TRANSCORP) were the most traded by value, with their shares worth ₦1.96 billion, ₦1.76 billion and ₦1.23 Billion respectively exchanging hands.

Top gainers and losers

In the day’s trading session, 24 stocks advanced against 47 decliners.

The top five gainers were;

1. Sunu Assurances Nigeria Plc (NGX: SUNUASSUR): It gained 10% to close at ₦1.98.
2. Dangote Cement Plc (NGX: DANGCEM): It gained 9.9% to close at ₦592.60.
3. Tripple Gee and Company Plc (NGX: TRIPPLEG): It gained 9.81% to close at ₦2.35.
4. Eterna Plc (NGX: ETERNA): It gained 9.8% to close at ₦25.20.
5. Cutix Plc (NGX: CUTIX): It gained 8.89% to close at ₦2.94.

The top five losers on were;

1. University Press Plc (NGX: UPL): It lost 10% to close at ₦3.60.
2. McNichols Consolidated Plc (NGX: MCNICHOLS): It lost 10% to close at ₦1.62.
3. Cadbury Nigeria Plc (NGX: CADBURY): It lost 10% to close at ₦26.10.
4. Flour Mills of Nigeria Plc (NGX: FLOURMILL): It lost 10% to close at ₦42.30.
5. Sovereign Trust Insurance Plc (NGX: SOVRENINS): It lost 10% to close at ₦0.54.

Three of the indices under our watch closed negatively, while two advanced.

1. Banking Index: The index lost 0.90% to close at 1,029.41 points (YTD: +14.74%).
2. Industrial Index: The industrial index gained 5.15% to close at 4,547.24 points (YTD: +67.65%).
3. Consumer Goods Index: The index lost 1.48% to 1,367.36 points (YTD: +21.95%).
4. Oil & Gas Index: It gained 0.55% to 1,156.23 points (YTD: +10.88%).
5. Insurance Index: The index lost 2.53% to 442.45 points (YTD: +37.55%).

Nnamdi Maduakor

Nnamdi Maduakor is a Writer, Investor and Entrepreneur