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Dangote, shareholders lose over N200bn

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Dangote Cement to buy back 85m units of own shares

This week hasn’t been good for shareholders of Dangote Cement, as the company has been in a losing phase, while trading on the manufacturer’s stock has been low, with investors appetite elsewhere.

Analysis of the company’s stock performance showed volume of shares traded within the last four days has dropped after Dangote Cement’s stock price rose to N215 per share last week Friday.

As trading on the company’s stock fell to 193.07 million shares from 417.08 million, the stock price followed the same path, as investors are pricing Dangote Cement’s stock low.

The stock traded flat at a price of N215 per share for two days, from Monday to Tuesday, before dropping to N214 per share on Wednesday, then depreciated further after losing N4 to end trading at N210 per share.

Read also: Tax holiday over, as Dangote cement income tax increases by 47.3%

This affected Dangote Cement’s market capitalisation which declined from the N3.7 trillion valuation it started this week with, to N3.5 trillion market worth on Thursday.

The low trading activities on the company’s stock and low pricing by investors pushed the capitalisation down, and cost shareholders over N200 billion in the space of four days.

The loss recorded by the shareholders occured at a period the Nigerian stock market is experiencing a bearish run which has crashed the total market capitalisation to N20.03 trillion on Thursday, from N20.83 trillion it reported at the start of the month.

By Fakoyejo Ayodeji…

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