SEC approves Dangote Cement buy back programme as NGX records mild gains

Dangote Cement Plc has notified the investing public that the Securities Exchange Commission (SEC) had approved its establishment of a new buyback programme. The programme will mature on the 12th of December 2023, a year from the date of the shareholders’ resolution. The share buyback will be undertaken through an open market offer or self-tender, at the discretion and terms of the Management of the Company, subject to prevailing market conditions.

Meanwhile the equities market sustained the prior session’s gain as the NGX-ASI rose 4bps to 55,822.14 points, supported by price uptick in DANGCEM (+1.1%), TRANSCORP (+8.7%), and GTCO (+0.6%). Nonetheless, YTD return remained unchanged at 8.9% while market capitalisation gained ₦11.4bn to ₦30.4tn. Activity evel varied as volume traded rose 103.9% to 311.5m units while value traded fell 13.4% to ₦3.1bn.

Performance across sectors within our coverage was negative as 3 indices lost, 1 gained while the Banking and Consumer Goods indices closed flat. The Oil & Gas and Insurance indices led the laggards, down 2.0% and 0.5% respectively, owing to losses in CONOIL (-9.9%), ARDOVA (-8.3%), SOVRENIN (-6.7%), and PRESTIGE (-8.9%). Likewise, the AFR-ICT index shed 0.2% due to price decline in MTNN (-0.5%). However, bargain hunting in DANGCEM (+1.1%) pushed the Industrial Goods index higher by 0.5%.

Investor sentiment, as measured by market breadth, waned to -0.11x from 0.00x in the prior session as 11 stocks advanced, 19 declined while 76 closed flat. We expect the positive performance to be sustained in the fianl trading session of week, driven by bargain activities.

Market Cap (₦’bn)                     30,409.30 

Market Cap($’bn)                              65.9 

NGX All-Share Index                 55,822.14 

Daily Performance %                          0.0% 

WTD Performance %                           0.5% 

MTD Performance %                           0.0% 

QTD Performance %                            8.9% 

YTD Performance %                            8.9% 

Daily Volume                                    311.5 

Daily Value (₦’bn)                                3.1 

Daily Value ($’m)                                  6.7

Sectoral Indices Performance

NGX                                                    30 0.2%

NGX BANKING INDEX                       0.0%

NGX INSURANCE INDEX                 -0.5%

NGX CONSUMER GOODS INDEX   0.0%

NGX OIL/GAS                                      -2.0%

NGX LII                                                   0.0%

NGX INDUSTRIAL GOODS INDEX   0.5%

NGX-AseM                                               0.0%

Source: Afrinvest