Dangote leads as cement giants post gain of N7.344 trn in six months

Dangote Cement Plc, one of the major Cement manufacturers listed on the industrial goods sub-sector of the Nigerian Exchange Group Plc (NGX) led BUA Cement, Lafarge Africa Plc as the sub-sector posted a combined  gain of N7.344 trillion by the end of the first half of 2024.

The three companies grew market capitalization to N16.587 trillion at the close of trading on June 28, 2024, from the opening figure of N9.243 trillion representing a growth of 79.45 per cent or N7.344 trillion.

Dangote Cement accounted for about N5.739 trillion of the combined gains of N7.344 trn by the three biggest Cement companies in the country in the first half of 2024.

Its stock grew by 105.28 per cent to close at N656.70 per share from N319.90 in January 2024. Also, its market capitalization during the first half of the year hit N11.190 trillion from the N5.451 trillion in January

BUA Cement Plc followed with a gain of  about N1.565 trillion during the period.

Its stock price grew by 47.6 per cent to N143.20 per share from  N97.00 at the beginning of 2024, while its market capitalization stood at N4.849 trillion as against the N3.284 trillion in January 2024.

Lafarge Africa trailed with a marginal 8.09 per cent growth to N34.05 per share and N548.470 billion in market capitalisation from N31.50 and N507.395 billion in market capitalisation at the beginning of the trading year.

READ ALSO: High interest rate will suffocate businesses, hinder job creation—Dangote

Samuel Oyekanmi, a research analyst noted that the financial assets tend to migrate from equities to the debt market or fixed-income securities, however, investors also take a position on stocks that are elastic in demand due to escalating interest rates.

He noted that areas that are elastic in demand like consumer goods stocks and banking stocks are likely to be stocks to pick up during interest rate hikes.

Mayowa Badejo, a partner at 213 Capital Ltd noted that investors were in the earning season and that what investors would get from dividends was one of the factors that drove the demand for shares in the market during the period.

He noted that the equities market is defying current political uncertainties because investors are futuristic that the prospect for a yield environment is bright.