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Tag: Dangote Cement

  • NSE loses N370bn on Tuesday

    NSE loses N370bn on Tuesday

    The Nigerian Stock Exchange ( NSE ) on Tuesday sustained seven-day falling streak with the market capitalisation shedding N370 billion in one day.

    The market capitalisation lost N370 billion or 2.41 per cent to close at N14.967 trillion against N15.337 trillion achieved on Monday.

    Similarly, the All-Share Index which opened at 42,737.89 lost 1,029.74 points or 2.41 per cent to close at 41,708.15 following huge losses by some highly capitalised stocks.

    Some financial experts in an interview with our reporter attributed the persistent loss to decline in global stock markets, especially in the U.S. and Europe, contributed to the bearish trend in the market.

    Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University Keffi, said investors reactions to the global stock market trend led to sell pressure on the exchange.

    Uwaleke said drop in crude oil price following increased supply and profit taking by investors in respect of over-priced stocks, particularly those of tier 11 banks contributed to the development.

    He said relative uptick in returns from money market securities led to movement of funds from capital market to the money market securities.

    Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the bearish trend was expected because the stock market usually reacted to economic conditions.

    “This is New Year and the budget is yet to be passed, so money is not yet being released and people need to buy lots of things.

    “Fortunately, the market was bullish recently such that the values of shares went up making it possible for profit taking,” he said.

    Tella said the bearish trend would bring new opportunities for new investors as well as old ones who would want to adjust their financial portfolio.

    He said that these investors would go the market shortly to take advantage of the lower prices of shares.

    “We will start seeing bullish activities in the market again.

    “It is the nature of the market to facilitate between bullish and bearish swings as dictated by market forces,” he said.

    An analysis of the price movement showed that Nestle recorded the highest loss depreciating by N40 to close at N1, 320 per share.

    Dangote Cement trailed with a loss of N13.30 to close at N258.70, while Nigerian Breweries dipped N5.20 to close at N127.80 per share.

    Guinness was down by N5 to close at N105, while International Breweries depreciated by N2.50 to close at N57.50 per share.

    On the other hand, Lafarge Afeica led the gainers’ table growing by N1 to close at N51 per share.

    Zenith International Bank followed with a gain of 60k to close at N30, while Berger Paint gained 45k to close at N9.45 per share.

    Access Bank increased by 45k to close at N12, while Dangote Sugar Refinery advanced by 30k to close at N21 per share.

    The banking sub-sector was the toast of investors with Diamond Bank emerging the most traded, trading 67.69 million shares worth N181.14 million.

    FCMB Group followed with an account of 49.22 million shares valued at N126.18 million, while Fidelity Bank sold 42.78 million shares worth N129.55 million.

    United Bank for Africa traded 39.16 million shares valued at N437.59 million, while FBN Holdings exchanged 32.59 million shares worth N358.64 million.

    In all, the volume of shares traded closed lower with an exchange of 470.52 million shares valued at N3.68 billion transacted in 6,309 deals.

    This was against the 517.44 million shares worth N5.19 billion traded in 5,852 deals on Monday.

    NAN

  • NSE trading reopens on depressed note

    NSE trading reopens on depressed note

    Weekly transactions on the Nigerian Stock Exchange ( NSE ) opened on Monday on depressed note with the market indices sliding by 0.90 per cent.

    According to our reporter, the market capitalisation shed N136 billion or 0.90 per cent to close at N15.337 trillion amidst profit taking.

    It closed at N15.476 trillion on Friday.

    Also, the All-Share Index, which opened at 43,127.92, lost 390.03 points or 0.90 per cent to close at 42,737.89.

    An analysis of the price movement table indicated that Dangote Cement led the gainers’ table gaining N5.30 to close at N272 per share.

    Betaglass followed with a gain of N3.25 to close at N68.70, while PZ Industries gained N1.40 to close at N25.40 per share.

    International Breweries appreciated by N1 to close at N60, while GlaxosmithKline also added N1 to close at N21.20 per share.

    Conversely, Nigerian Breweries recorded the highest loss, dropping by N3.90 to close at N133 per share.

    Read Also: NSE tightens control on block divestment, large trades

    Guaranty Trust Bank trailed with N2.40 to close at N45.60, while Lafarge Wapco was down by N2 to close at N50 per share.

    Zenith International Bank shed N1.50 to close at N29.40, while Flour Mills depreciated by N1.10 to close at N31.50 per share.

    Similarly, the volume of shares traded closed lower as investors exchanged 517.44 million shares worth N5.19 billion in 5,852 deals.

    This was in contrast to the 552.39 million shares valued at N4.49 billion shares traded in 5,489 deals on Friday.

    Skye Bank was the investors’ delight accounting for 73.15 million shares worth N79.16 million.

    It was followed by FBN Holdings with 71.34 million shares worth N815.73 million, while Jaiz Bank traded 40.57 million shares valued at N42.39 million.

    Transcorp sold 40.48 million shares worth N84.07 million, while FCMB Group traded 26.22 million shares valued at N71.33 million.

    NAN

     

  • Dangote Cement in N23b shares deal as equities recover

    Investors struck two cross deals for the transfer of about 94.7 million shares of Dangote Cement valued at N23.12 billion yesterday, in another transactions that highlighted the widening ownership structure of Africa’s largest cement producer.

    The transactions yesterday represented 0.56 per cent of the total issued outstanding shares of 17.04 billion ordinary shares of 50 kobo each of the most capitalised quoted company at the Nigerian Stock Exchange (NSE).

    Trading documents obtained by The Nation indicated that a cross deal was struck for 22.625 million ordinary shares of 50 kobo each of Dangote Cement at N241.50 valued at N5.464 billion while another cross deal was struck for 72.071 million ordinary shares of 50 kobo each at N245 per share worth N17.657 billion.

    The two deals were done as an off-market, negotiated cross deal, thus it was not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    With other non-voluminous transactions, total transactions on Dangote Cement stood at 95.479 million shares valued at N23.31 billion. This lifted total turnover at the NSE to 462.67 million shares worth N26.81 billion in 5,090 deals.

    Foreign investors had in mid November 2017 snapped up 0.75 per cent equity stake in Dangote Cement in a deal valued at N27 billion. The foreign investors had struck a deal for the exchange of 128.56 million ordinary shares of 50 kobo each at N210 per share. Reliable sources indicated that the foreign investors were from Dubai, United Arab Emirates (UAE).

    Dangote Industries Limited (DIL), the majority core investor in Dangote Cement Plc, plans to sell shares valued at more than N200 billion in a partial divestment that will widen the float for Dangote Cement. DIL is owned by Africa’s richest billionaire, Alhaji Aliko Dangote and it owns more than 90 per cent majority equity stake Dangote Cement, Nigeria’s most capitalised company.

    The Nation had exclusively reported that Dangote Cement had secured regulatory approval for block divestment of 852.03 million ordinary shares of 50 kobo each. The block divestment represents 5.0 per cent of the issued share capital of Dangote Cement. Dangote Cement accounts for more than 30 per cent of the total market capitalisation of quoted equities.

    A source in the know had told The Nation that DIL plans to undertake the block sale in tranches and that the sale of 416 million ordinary shares in the third quarter of this year was the first tranche of the N200 billion divestment. About 2.44 per cent equity stake in Dangote Cement was swapped under pre-arranged transactions earlier this month. A report on the transactions indicated that six deals were struck for the transfer of 416 million ordinary shares of 50 kobo each at a below-the-market price of N210.

    South African government had in June 2013 bought into Dangote Cement. The South Africa’s government, through its wholly owned investment company, Public Investment Corporation of South Africa (PIC), had acquired 1.5 per cent equity stake in the Nigerian cement group to emerge the second largest equity investor.

    A reliable source had said the block divestment might not be unconnected with a regulatory requirement to free more shares of the cement company for ownership and trading by minority investors.

    Meanwhile, Nigerian equities recorded a marginal recovery yesterday, halting a two-day profit-taking downtrend. Benchmark indices at the Exchange indicated a marginal day-on-day gain of 0.03 per cent, equivalent to net capital gain of N3 billion.

    Aggregate market value of all quoted equities rose from N13.553 trillion to close at N13.556 trillion. The All Share Index (ASI) increased marginally from 38,913.99 points to close at 38,924.63 points. The average year-to-date return improved marginally to 44.84 per cent.

    “We expect positive performance in coming session, with bargain hunting to set in as the market moves from the oversold region,” FSDH Securities stated.

     

  • Dangote Cement declines bid on SA firm

    Dangote Cement declines bid on SA firm

    Dangote Cement Plc, Nigeria’s most capitalised quoted company and Africa’s largest cement producer, at the weekend stepped down from its much-publicised bid to acquire the share capital of PPC Limited-a South African leading cement firm.

    In a regulatory filing at the weekend, Dangote Cement board of directors stated that it has notified PPC board of directors that it no longer has an interest in acquiring the South African firm’s share capital.

    Dangote Cement had last month confirmed that it had initiated a bid to acquire the entire share capital of PPC Limited. It, however, noted that the acquisition talks were still at the preliminary stage and the transaction remained a potential one, contrary to reference to the talks in some quarters as ongoing.

    Established in 1892 as De Eerste Cement Fabrieken Beperkt, PPC is a leading supplier of cement and related products in southern Africa. It has 11 cement factories in South Africa, Botswana, Democratic Republic of Congo, Ethiopia, Rwanda and Zimbabwe.

    With annual capacity of 11.5 million tonnes of cement products, PPC’s materials business comprise Safika Cement, Pronto Readymix (including Ulula Ash) and 3Q Mahuma Concrete. Its footprint in the readymix sector has grown to include 26 batching plants across South Africa and Mozambique.

    Also, PPC produces aggregates; with its Mooiplaas aggregates quarry in Gauteng, having the largest aggregate production capacity in South Africa. PPC Lime, one of the largest lime producers in the southern hemisphere, produces metallurgical-grade lime, burnt dolomite and limestone.

    PPC is closely linked to the growth and development of South Africa as it has produced cement for many of the country’s most famous landmarks and construction projects.

    Two global rating agencies, Moody’s Investors Service and Global Credit Ratings (GCR), recently rated Dangote Cement high for its financial strength and corporate outlook. In rating reports, both global rating agencies described the outlook of the Africa’s largest cement producer as stable.

    Moody’s assigned three respective high ratings to the cement company, including a first time Ba3 Local Currency Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating and Aaa.ng National Scale Rating (NSR).

    Global Credit Ratings assigned long-term and short-term national scale issuer ratings of AA+ (NG) and A1+ (NG) respectively to Dangote Cement.

    Assistant Vice President and Lead Analyst for Dangote Cement at Moody’s, Douglas Rowlings, said the ratings reflected Dangote Cement’s “strong standalone credit profile and track record of demonstrated financial support from a larger and more diversified parent, Dangote Industries Limited”.

    Chief Executive Officer, Dangote Cement Plc, Onne van der Weijde, noted that the ratings highlight the financial strength the company had achieved through unwavering focus on the profitable expansion of its business.

  • Dangote approaches PPC about takeover deal

    Dangote approaches PPC about takeover deal

    Dangote Cement has approached South African cement producer, ( PPC ), for takeover bid, but talks are at preliminary stages, Media reported on Thursday.

    PPC is already considering a bid by local rival, AfriSam, which launched a new all-share bid that values PPC at about 9.2 billion rand

    Dangote Cement bid for PPC is a way to increase its visibility in the South Africa and surrounding SADC market.

    PPC offers the prospect of a much larger business than DangCems current operation in South Africa through Sephaku Cement.

    Annual Financial Statement for the full Year ended March 31, 2017 shows that Sephaku Cement had revenues of R2.28 billion (178 million dollars) in 2016 (see Fig 1).

    This compares to PPC which had revenues of R9.6 billion ($748 million) in 2016, about four times that of Sephaku.

    Obviously DangCem would love to own the bigger company and has signalled it would be open to a sale of all or part of its cement operations in Sephaku Cement to win regulatory approval for a takeover.

  • Dangote Cement, Nestle Nigeria drag equities to marginal decline

    Nigerian equities opened yesterday with a broad underlying positive sentiment but losses by the two foremost quoted companies-Dangote Cement and Nestle Nigeria depressed the stock market to a marginal decline.

    While there were 27 gainers to 16 losers, losses by highly capitalised stocks overwhelmed the overall market situation. Nestle Nigeria-the highest-priced stock at the Nigerian Stock Exchange (NSE), recorded the highest loss of N9.99 to close yesterday at N1,200.01. Dangote Cement-the most capitalised quoted company, followed with a loss of N9.38 to close at N215.62. Three other highly capitalised stocks-Stanbic IBTC Holdings, Zenith Bank and Lafarge Africa lost 74 kobo, 53 kobo and 50 kobo to close at N38.11, N24 and N58.50 respectively.

    The benchmark price index for the stock market-the All Share Index (ASI) declined by 0.91 per cent to close at 36,584.44 points as against its opening index of 36,920.56 points. Aggregate market value of all quoted equities on the NSE also dropped from its opening value of N12.726 trillion to close at N12.700 trillion, representing a net capital loss of N26 billion. The average year-to-date return slipped to 36.13 per cent.

    Total turnover stood at 368.38 million shares valued at N6.27 billion in 3,729 deals. AIICO Insurance was the most active stock with 131.01 million shares valued at N74.67 million. Guaranty Trust Bank followed with 61.18 million shares worth N2.48 billion while Zenith Bank ranked third with 22.74 million shares valued at N542.23 million.

    On the positive side, most stocks closed higher as bargain-hunters continued the hunt for value stocks. Beta Glass led the gainers with a gain of N2.51 to close at N59.84. Flour Mills of Nigeria trailed with a gain of N2.49 to close at N31. Nigerian Breweries followed closely with a gain of N2.48 to close at N183.50. Guaranty Trust Bank rose by N1.20 to close at N40.70 while UACN and Unilever Nigeria chalked up 50 kobo each to close at N16.50 and N46 respectively.

  • Access Bank, Dangote Cement for N500m bonanza

    Access Bank, Dangote Cement for N500m bonanza

    As more winners emerge in the on-going N500 million Dangote Cement Retailers Bonanza, Season two, the scope of the winnings has been expanded by the Access Bank which is partnering the cement company to offer additional prizes to the Dangote Cement distributors and retailers.

    At the presentation of prizes to the new winners in Lagos yesterday, the bank told the winners that henceforth, any distributor or retailer who refer someone to the bank would stand the chance of winning a return ticket to Dubai and other household items like Fridges, freezers, fans television etc.

    At the Isolo, Lagos depot of the Dangote cement yesterday, leading the pack of star winners was a 90-year old retailer, Baba Hassan Shitta, who defied early morning drizzling to take delivery of his 600 bags and 20 ft. he won.

    He explained that he has been in the business of cement retailing for years and that Dangote cement bonanza is the first time he see a cement company running a promo to benefit the retailers.

    “I was more that excited when I received the phone call that I have won 600 bags of cement. It was my distributor who helped me filled the coupon that submitted. Ever since I started the business, I have never sold any other cement in my life. Dangote has been good to me and this is another opportunity for me again. We are being encouraged.

    “May God continue to bless Alhaji Dangote for his generousity, imagine how much the number of cement they are giving me will add to my business. It’s a lot. I will take story to Ikorodu and tell others who are not yet participating in the Bonanza that it is real,” Baba Shitta stated.

    Also, basking in the euphoria of their winning, Soyombo Rashidat of Morash Ventures, Ikorodu and Madam Khadijat Oluseun Rasheed of Kazeezat Enterprises, Ibafo said the Company have strengthened their resolve to continue in the business and that Dangote has revolutionised the business to the level where they could pass it on to their children.

  • Dangote Cement spurs equities to N73b rebound

    Dangote Cement spurs equities to N73b rebound

    Nigerian equities broke a three-day consecutive downtrend yesterday as Nigeria’s most capitalised quoted company-Dangote Cement, rallied the market to a net capital gain of N73 billion. While there were still widespread selling sentiments with nearly two losers for every gainer, gains by large-cap stocks nudged the overall market position to a positive close.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) improved to N12.517 trillion as against its opening value of N12.444 trillion. The All Share Index (ASI)-the main index for the equities market, also increased from its opening index of 36,102.38 points to close at 36,316.58 points, representing average day-on-day return of 0.59 per cent. The average year-to-date return improved to 35.13 points.

    Most sectoral indices closed positive, underlining the influence of the large-cap sectoral leaders. The NSE Industrial Goods Index rose by 0.9 per cent. The NSE Insurance Index appreciated by 0.3 per cent while the NSE Banking Index inched up by 0.1 per cent. On the downside, the NSE Oil & Gas Index declined by 1.2 per cent while the NSE Consumer Goods Index dipped by 0.4 per cent.

    Dangote Cement led the 15-stock gainers’ list with a gain of N5.80 to close at N219.80. Flour Mills of Nigeria-Nigeria’s biggest flour miller, followed with a gain of N1.36 to close at N28.89. Total Nigeria rose by N1.11 to close at N228.11. Zenith Bank appreciated by 51 kobo to close at N23.01 while Dangote Sugar Refinery and Nascon Allied Industries chalked up 20 kobo each to close at N13 and N12.20 respectively.

    Total turnover stood at 225.14 million shares valued at N5.48 billion in 5,110 deals. Custodian and Allied was the most active stock with 30.3 million shares worth N115.07 million. Zenith Bank followed with 25.97 million shares worth N597.39 million while Guaranty Trust Bank ranked third with 24.72 million shares valued at N924.82 million.

    Market analysts at Afrinvest Securities said they expected the market to trade in similar positive trend on Friday.

    On the downside, Mobil Oil Nigeria led the 28-stock losers’ list with a loss of N11.84 to close at N225.06. Nestle Nigeria dropped by n10 to close at N1,210. Guinness Nigeria declined by N2.96 to close at N85. Nigerian Breweries dropped by N1 to close at N184 while Lafarge Africa dipped by 50 kobo to close at N58.50 per share.

  • Dangote Cement redeems N500m prizes to customers

    Dangote Cement redeems N500m prizes to customers

    The management of Dangote Cement Plc at the weekend redeemed the prizes won by its customers, splashing them with thousands of cement bags and branded containers worth N480 million in its retailers bonanza for season two.

    No fewer than 10 retailers, who emerged as star winners from the company’s West region claimed their prizes at the weekend with some going home with 1,200 bags of cement with 40 ft container and others winning 600 bags with 20 ft containers.

    Amid celebration, members of the company’s management moved from locations to locations in a carnival like procession to deliver the products and containers to each of the winners at their business locations, mostly markets to the surprise of many other traders.

    Leader of the team, Mrs. Funmi Sanni, the West Regional Sales Director, said the decision to take the products to the retailers in their respective place of trade was to prove that the bonanza was not a fluke but real and that no sacrifice is too much for the company to bear for its retailers.

    She explained that the Dangote Cement management designed the bonanza to reward its loyal retailers and help them shore up their businesses.

    According to her, this is why it included containers in the winning package.

    On how the retailers won, the regional director explained that all they need do is to buy up to 300 bags and collect a coupon, fill it and drop in the designated collection box.

    Every week, a draws are held to select star winners. Anyone could win the 1200 bags, 600 bags and certainly everyday some people win 10 bags of cement as consolation prizes.

    The first star winner last week from the region was Mrs. Ganiyat Abiola of Buthayna Nigeria Ltd, whose place of business is the popular Mararaba market in Ilorin.

    The company held a long procession from its  Olorunsogo  mega store  with the trailer load of cement to offload to the winner. Her winning is estimated to cost N4 million.

    The entire market was held up as the procession attracted attention to the fact that a star winner of the bonanza is from the market.

    Reacting, Mrs. Abiola, who has been in cement business for close to 30 years, said it has never happened before that a retailer would win in a promo and the company would come in the full public glare to redeem the price.

    Six star winners, who also won in Benin and Auchi, took delivery of their products and containers in the Edo State capital.

    A winner, Nora Omolara, said his winning was a challenge to other retailers in Edo .

    From there the procession headed to Ibadan, where the street winner, Gbadegoye Anthony, danced to the tunes churned out by the boys brigade band on sighting the lorry load of cements and the container.

    Anthony of Goodness and Mercy Company said he got to know about the promo about one month ago and decided to give it a trial by submitting his coupon.

  • Foreign investors pump N86b into Dangote Cement

    Foreign investors pump N86b into Dangote Cement

    Dangote Industries had a roaring time yesterday on the Nigerian Stock Exchange (NSE), selling 410 million shares of Dangote Cement valued at N86.1 billion to some foreign investors at N210 per share.

    The transaction was crossed at off-market price of N210 in six deals.

    Mallam Garba Kurfi,  the Managing Director,  APT Securities and Funds Ltd. , told NAN that the details of the foreign investors were yet to be revealed.

    Kurfi said that the transaction was perfected at N210 against the normal market price of N222.22 per share.

    He said some foreign investors were taking position in the company due to its capacity building and high investment yield.

    Kurfi recalled that the company, in 2013, sold 1.5 percent of its 95 per cent stake in Africa’s biggest cement producer to South Africa’s Public Investment Corporation (PIC) for 289.3 million dollars.

    Consequently,  Dangote Cement became the most traded with a turnover of  417.76 million  shares valued at N87. 76 billion.

    It was followed by FBN Holdings with 61.01 million shares worth N367.53 million.  Access Bank exchanged 39.86 million shares valued at N399.59 million.

    United Bank for Africa (UBA) sold 38.43 million shares valued at N371.84 million.

    The volume of shares traded improved by 73.33 per cent as investors staked N94.05 billion on 849.60 million shares transacted in 5,602 deals.

    This was against the 490.16 million shares valued at N5.27 billion achieved in 5,558 deals.

    The All-Share Index closed upbeat, increasing by 876.62 points or 2.45 per cent to close at 36,720.62 against 35,844.00 on Monday.

    The market capitalisation, which opened at N12.353 trillion, inched N302 billion or 2.44 per cent to close at N12.655 trillion.

    Nestle recorded the highest gain to lead the gainers’ table with N21.30. It closed at N102.50 per share.

    Dangote Cement followed with a gain of N16.25  to close at N240 and Guinness appreciated by N1.50  to close at N66.55 per share.

    PZ Industries increased by N1.15  to close at N24.15. Stanbic IBTC rose by N1.09  to close at N36.99 per share.

    Forte Oil topped  the losers’ chart, shedding N4.70  to close at N57 per share.

    Okomu Oil trailed with a loss of N4 to close at N76.03 and  Lafarge Africa was down by N2.72  to close at N55 per share.

    Julius Berger dropped by N1.80  to close at N34.20.  7UP declined by N1.59  to close at N90.30 per share.