Dangote’s Share Buyback Triggers Record-breaking Daily Gain of ₦850.97bn
By Patience Ikpeme
The shares of Dangote Cement experienced strong demand, leading to a maximum daily gain of 10 percent on Monday. This was driven by the company’s share buy-back plan, which contributed to a significant 2.48 percent gain in the overall market. As a result, the month-to-date and year-to-date returns increased to +6 percent and +26.1 percent, respectively.
The market capitalization of the Nigerian Exchange (NGX) also rose by ₦850.97 billion, closing at ₦35.18 trillion. The NGX All Share Index, which measures the performance of traded equities, also increased by 2.48 percent to reach 64,603.69 points, the highest level since March 17, 2008.
The rise in the market was supported by an increase in foreign investors’ transactions, which rose from 4 percent to 12 percent following the unification of foreign exchange rates and the devaluation of the Naira. This has contributed to a 6 percent increase in the index this month, marking its third consecutive monthly gain.
The market performance on Monday was driven by significant buying interest in Dangote Cement (+10%), MTNN (+1.82%), and STANBIC (+6.83%). These gains offset losses in GTCO (-1.91%), WAPCO (-0.17%), and NB (-2.52%).
Dangote Cement’s stock reached a 52-week high with a maximum gain of 10 percent after the company announced its share buy-back plan. The plan involves buying back up to 168,735,593 fully paid-up ordinary shares, representing 1 percent of the current issued shares.
The total trading volume increased by 49.8 percent to 1.84 billion units, valued at ₦22.03 billion, in 14,584 deals. FBNH was the most traded stock by volume and value, with 198.22 million units and ₦4.42 billion, respectively.
In terms of sectors, the Industrial Goods (+5.1%), Insurance (+4.2%), Oil & Gas (+2.6%), and Banking (+1.7%) indices advanced, while the Consumer Goods (-0.2%) index declined.
Overall, investor sentiment was largely positive, with 71 stocks gaining and 19 stocks losing. Dangote Cement (+10%), NEIMETH (+10%), and MRS (+10%) recorded the most significant gains, while PHARMDEKO (-9.9%) and UNIONDICON (-9.5%) were the top losers of the day.
