Investors jostle for Dangote Cement as firm hits N10tr market cap
SHARES of cement producing giant, Dangote Cement Plc sustained foothold on the capital market, dominating other bluechips on the gainers' chart.
The stock, which hit new 52 week high yesterday, gained 9.99 per cent to close at N592.6, hitting N10.095 trillion market cap and becoming the first Nigerian company to reach the mark.
The historic milestone buoyed transactions on the exchange yesterday, as the over all market capitalisation gained N673 billion to close at N52.408 trillion while the allshare index ( ASI) rose by 1,230 points, representing a gain of 1.3 per cent to close at 95,768.12 points.
Dangote Cement led 23 others with N59.80 kobo or 9.99 per cent appreciation to close at N592.60 kobo per share while it gained 9.98 per cent to close at N538.80 kobo at the close of transactions last week Friday.
The sudden rise in share price may, however be attributed to businessman, Femi Otedola moves to purchase some shares in the blue chip company and subsequent reports on what motivated his interest in the stock. According to Otedola, his sudden appetite on the stock was due to Dangote Cement's outstanding records of consistent and improved dividend pay out and sustained profitability over the years as the largest producer of cement in sub saharan Africa.
"Dangote Cement’s export capabilities and extensive operations across SubSaharan Africa are essential for regional economic integration and growth. My investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development.
"In my in vestment decisions, I focus on long- term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success. Companies like Dangote
Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritise their shareholders.
"Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices,” Otedola said.