- Dangote Group Delights Investors with High Returns as Stocks Soar
The four companies under Dangote Group, that are listed on the Nigerian Stock Exchange(NSE) have delivered impressive returns to shareholders in the outgoing year.
Dangote Group has four of its companies listed on the NSE, indicating the magnanimity of the President of the Group, Alhaji Aliko Dangote to allow others to share out of his wealth.
The four companies are: Dangote Cement Plc, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc and NASCON Allied Industries Plc. An analysis of the performance of the companies in 2017 showed that their aggregate value has increased by 39 per cent from N3.082 trillion at the beginning of the year to N4.278 trillion. This also implies that the Dangote Group accounts for 32 per cent of the total value of the nation’s equities market.
Market operators said this indicates that Dangote Group is responsible for over 30 per cent of the growth the equities market is enjoying. While the aggregate growth of the four stocks rose by 39 per cent, a further analysis of each stock showed that investors recorded higher returns at the individual stock level.
For instance, investors in Dangote Sugar Refinery Plc recorded a capital growth of 229 per cent as the stock soared from N6.11, at the beginning of the year to N20.15 as at Wednesday. Similarly, investors in Dangote Flour Mills Plc enjoyed a capital gain of 178 per cent, following a surge in the share price from N4.25 to N11.85, while NASCON Allied Industries Plc fetched investors a return of 115 per cent as the stock rose from N8.50 to N18.34. Dangote Cement Plc recorded a growth of 32 per cent as the equity, which is the most capitalised on the exchange, grew from N173.99 to N230.50.
The companies have been investors’ delight, posting impressive financial results. They recorded improved performance for the nine months ended September 30, 2017. Besides, Dangote Cement Plc has been attracting foreign portfolio investment into the economy.
About $600 million was invested in the stock of Dangote Cement Plc this year. This is not only a vote of confidence in the company but also it signalled confidence in the Nigerian stocks and economy in general.
Meanwhile, the stock market reversed its negative performance on Wednesday to close on a bullish note thursday. The NSE All-Share Index appreciated by 0.27 per cent to close at 37,990.74.
China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market
China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.
Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.
China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.
Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.
This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.
In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.
However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.
While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.
The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.
BUA Foods Invests $200m in Lafiagi Sugar Estate Expansion
Nigeria’s One-Year Treasury Bill Oversubscribed by 300%
Nigeria’s one-year treasury bill was oversubscribed by 300% during the recent Primary Market Auction conducted by the Central Bank of Nigeria (CBN) on Wednesday.
The auction, aimed at rolling over maturing Nigerian Treasury Bills worth N1 trillion, saw unprecedented demand for the one-year T-bill.
Investors offered a total of N1.87 trillion for the N600 billion on offer, indicating a significant appetite for government securities. Out of the total subscriptions, N908.75 billion was allotted, with stop rates set at 19%.
The auction covered maturities across three different tenors: 91-day, 182-day, and 364-day bills, with varying amounts on offer.
While the 91-day bill received N39.90 billion in offers, all were sold, and the 182-day bill garnered N76.83 billion subscriptions, out of which N51.35 billion was allotted.
Managing Director of Arthur Steven Asset Management, Tunde Amolegbe, attributed the remarkable performance of the one-year bills to investor confidence in the current government and its reform initiatives.
He highlighted investors’ preference for higher rates due to signals from the CBN indicating tightening monetary policies amid accelerating inflation.
Experts view the oversubscription as a testament to investors’ trust in the government’s reforms and management of the country’s debt obligations.
The auction reflects a move by the CBN to address liquidity in the financial system while managing Nigeria’s debt obligations effectively.
The significant oversubscription signals robust investor confidence and highlights the attractiveness of Nigerian government securities despite prevailing economic challenges.
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