Shares of three Dangote firms quoted on the ground of the Nigerian Trade Group (NGX) recorded a mixed achieve of 34.55% throughout the yr.
This resulted in buyers of the businesses gaining about N1.641 trillion on the shut of buying and selling on December twenty ninth of December 2023.
The market sentiment for the businesses which includes Dangote Cement Plc, Dangote Sugar Plc, and Nascon Allied Industries Plc has remained resilient within the face of financial volatility.
Breakdown of the features:
- Checks by Nairametrics confirmed Dangote Cement Plc closed its final buying and selling day (Friday 29, December 2023) at N319.90 per share and N5.451 trillion in market capitalisation on the Nigerian Inventory Trade (NGX) as in opposition to N261.00 per share and N4.447 trillion in market capitalization in the beginning of buying and selling in January 2023, therefore has earned a achieve of N1.004 trillion or 22.56 % yr so far.
- Additionally, Dangote Sugar Plc shares rose to N57.00 per share or N692.372 billion in market capitalization after the yr’s buying and selling from N16.05 per share or N194.957 billion in the beginning of buying and selling, therefore including 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 yr’s buying and selling from N11.10 per share or N29.408 billion in the beginning of buying and selling, therefore including N112.999 billion or 384.24% to the market capitalization.
Market efficiency:
The Nigerian Trade (NGX) Restricted All-Share Index (ASI), rose by 45.9% to shut at 74,773.77 factors on Friday, December 29, 2023, from 51,251.06 factors in 2022.
The constructive market sentiment noticed amongst buyers will be attributed to numerous components, with a key affect being the beneficial insurance policies carried out by President Bola Tinubu’s administration.
These insurance policies embody the removing of gasoline subsidies, the rationalization of trade charges, and the floating of the naira. Traders strategically positioned themselves, capitalizing on the latest document earnings posted by quoted corporations.
Market analysts’ market outlook:
Mike Ezeh, the Chief Government Officer of Crane Securities Restricted, mentioned, the emergence of President Bola Tinubu additional energised the market since market individuals have hope in his capability to rejig the economic system and implement economy-friendly insurance policies.
- “The elections got here and have been hitch-free in opposition to all unification of the a number of trade charges, evaluation of financial and financial insurance policies, a shake-up of main modifications carried out on the apex financial institution and its overflow right down to the deposit cash banks throughout the nation introduced stability to the market.
- “The commissioning of the primary indigenous non-public refinery which has a cyclical impact on each upstream and downstream operations of petroleum firms quoted available in the market propelled the interaction available in the market by some high-net-worth buyers on many quoted firms leading to excessive turnover in buying and selling volumes of these firms resulting in the numerous enhance in market capitalisation inside the interval.”
He urged the brand new authorities in 2024 to proceed to implement insurance policies that would offer an enabling surroundings for companies to thrive, saying this might assist increase the nation’s International Direct Funding (FDI) and entice issuers to the capital market.
Commenting, Tajudeen Olayinka, Analyst and CEO, of Wyoming Capital and Companions mentioned:
- “The inventory market has been fairly eventful and bullish in 2023, and might moderately venture additional enchancment in 2024, as extra firms strategy the marketplace for itemizing and public choices.
- The truth that authorities will rely largely on using non-public capital in addressing infrastructure deficit, means that we’ll see a greater capital market.”
