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Business News of Saturday, 9 January 2021

Source: Naira Metrics

Dangote Cement shares lose N339 billion following completion of share buyback

The Shares of Dangote Cement Plc lost N339 billion, following the completion of the first tranche of the Cement behemoth’s share buyback programme.

This was uncovered by Nairametrics, after tracking the performance of the shares of the cement manufacturer during the week.

The checks revealed that the market capitalization of the company, in just a week, declined from N4,173,220,263,484.50 at the open of trade on Monday 4th of January to N3,834,114,166,125.00 at the close of trade today the 8th of January 2021.

This suggests that despite the completion of the first tranche of the Company’s Share Buy Programme, the shares of the largest cement manufacturer in Nigeria, with a total installed production capacity of 48.6 million tonnes per annum, decreased by 8.15%, from N244.90 at the open of trade on Monday 4th January 2021 to N225.00 at the close of trade on Friday 8th January 2021.

It is important to note that shares of the company traded flat from the open of trade this year till the open of trade this morning when sell-offs of the shares of the company, on the floor of the Nigerian Stock Exchange, led to a decline of N19.90 per share.

This in total gives a decline of N397,047,700.00 on the shares of the company listed on the floor of the Nigerian Stock exchange.

What you should know

Nairametrics reported 2 weeks ago that 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.

It is important to note that in line with the announcement made by the company, the company’s stockbrokers at their discretion purchased DCP shares in the open market between 30th and 31st December, subject to prevailing market conditions and under the current daily trading rules of the NSE.

The approved brokers of the company under the Share Buy-Back Programme purchased 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.

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