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 our source, 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.
What you should know
- It was 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, it was 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 Our source 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.
MTN Nigeria, GTBank, Zenith Bank drop amid profit-taking
The market breadth closed negative as BOCGAS led 15 Gainers as against 34 Losers topped by BUACEMENT at the end of today’s session.
Nigerian Stocks suffered its first loss in 2020. The All Share index plunged by 1.83% to close at 40,396.14 index points as against the 2.18% gain recorded yesterday. Its Year-to-Date (YTD) returns currently stands at 0.31%.
- Tuesday’s trading session turnover at the Nigerian Stock market however ended bullish as volume surged up by 119.73% as against a 70.18% drop recorded on Monday’s trading session. TRANSCORP, ZENITHBANK, and FCMB were the most active to boost market turnover.
- LEARNAFRCA leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
- The market breadth closed negative as BOCGAS led 15 Gainers as against 34 Losers topped by BUACEMENT at the end of today’s session – an unchanged performance when compared with the previous outlook.
- BOCGAS up 9.72% to close at N10.5
- ETERNA up 6.48% to close at N5.75
- AFRIPRUD up 5.47% to close at N6.75
- VITAFOAM up 2.34% to close at N8.75
- SEPLAT up 1.91% to close at N410
- BUACEMENT down 5.88% to close at N80
- ZENITHBANK down 4.28% to close at N24.6
- GUARANTY down 2.84% to close at N32.55
- MTNN down 2.77% to close at N165.2
- OKOMUOIL down 1.10% to close at N90
Nigerian bourse ended the last trading session on a negative note. NSE30 stocks like MTN Nigeria, GTBank, Zenith Bank dragged the Sub-Saharan based index lower as profit-taking was notable among blue-chip stocks.
- Themoneymetrics however envisages cautious buying, as institutional investors reduce their long positions amid growing COVID-19 caseloads in Nigeria’s key international markets, particularly Europe, which contributes to about 40% of Nigeria’s crude oil shipment.
FCMB drops 10% in early trading
At about 10.55 am the tier-2 Banking stock was trading at N3.00 printing a decline of 9.91% at the Nigerian bourse.
Nigeria’s leading tier-2 bank, First City Monument Bank (FCMB) recorded significant losses at the first trading session of 2020.
What you must know: At about 10.55 am, the tier-2 Banking stock was trading at N3.00, printing a decline of 9.91% at the Nigerian bourse.
However, it’s critical to note FCMB is still the best performing Nigerian bank stock with yearly returns at 70%.
What this means: The plunge in share price is largely attributed to growing concerns among investors on recent reports stating the Management of First City Monument Bank Limited (FCMB) had announced it is currently investigating the allegation involving its Managing Director, Adam Nuru.
This was according to an exclusive press release made available to Nairametrics and signed by the Head of Corporate Affairs, FCMB Group, Diran Olojo.
MTN CEO Designate, Karl Toriola acquires shares worth over N41 million
Karl Toriola acquired 253,982 ordinary shares of MTN Nigeria Plc, worth over N41 million.
The CEO designate of Nigeria’s telecommunication behemoth, Karl Toriola , has acquired 253,982 ordinary shares of MTN Nigeria Plc, worth over N41 million.
This information was made available today, 4 January 2021 in a Notification of Share Dealing by Insiders, issued and signed by the Company Secretary, Mrs Uto Ukpanah.
According to the information disclosed by Mrs. Ukpanah, the CEO designate of MTN Nigeria PLC acquired 253,982 ordinary shares of the largest telecommunication company in Africa on 31 December 2020.
The purchase of the shares was made over a spread of three deals/transactions on the floor of the Nigerian Stock Exchange, at an average price pegged at N162.96, over the course of the transactions.
At this price, the total consideration for the 253,982 shares purchased by Mr. Toriola is put at N41,388,906.72
Why this matters
Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange.
This is in compliance with the exchange policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
What this means
The purchase of the shares of MTN Nigeria Plc by Mr. Toriola shows the confidence the incoming CEO has in the fundamental strengths of the company, as well as the valuation of the company in 2021 and beyond, despite the stemming regulatory tensions spiked by the Federal Government, as the FG moves to profile all active mobile phone subscribers, which may affect the profit of the company which was pressured in 2020.
What you should know
- It was reported that the Management of MTN Nigeria Communications Plc announced the appointment of Mr Karl Toriola as the CEO designate.
- His appointment as the CEO will become effective 19 March 2021, providing enough time for an orderly handover by Mr Ferdinand Moolman, the current CEO.