Dangote Group controls 43% of Nigerian stock market

09 March 2016, Lagos – Africa’s richest man and President, Dangote Group, Alhaji Aliko Dangote, controls 43 per cent of the Nigerian stock market, THISDAY checks revealed on Monday.

Nigerian-Stock-Exchange.NSE

Nigerian Stock Exchange.

Dangote, Mike Adenuga Jr, Femi Otedola, Folorunsho Alakija, and Abdulsamad Rabiu recently made the list of Forbes 2016 world’s billionaires.

Dangote owns the Dangote Group, which has interests in cement, sugar and flour businesses. He operates in Nigeria and some African countries, including Benin, Cameroon, Ghana, South Africa, Togo, Tanzania, and Zambia. Forbes valued Dangote at $15.4billion.

THISDAY checks on Monday showed that four of Dangote’s companies listed on the Nigerian Stock Exchange (NSE) had a market capitalisation of N3.832 trillion. This value is about 43 per cent of N8.91 trillion, which was the total capitalisation of the equities listed on the Nigerian bourse as at Monday.

The companies include: Dangote Cement Plc, Dangote Sugar Refinery Plc, NASCON Allied Industries Plc and Tiger Branded Consumers Goods Plc. With a value of N3.832 trillion, Dagote controls 43 per cent of the market, while the over 180 companies control the remaining 57 per cent.

An analysis of the companies indicate that Dangote Cement has the highest value of N2.862 trillion, which is 32 per cent of the total capitalisation of the equities market.

Dangote Sugar Refinery Plc trailed with N68 billion, while NASCON Allied a Industry Plc has N18 billion. Tiger Branded Consumer Goods has a value of N9.45 billion.

Market operators said the stake controlled by Dangote Group is highly significant.

“This is why Dangote Cement, for instance, determines the direction of the market most times. Whenever there is any price drop in Dangote Cement, the market will decline and if there is any rise in shares of Dangote Cement, the market closes positively,” a stockbroker said.

According to him, the 6.7 per cent gain recorded by the market last week, was highly influenced by Dangote Cement Plc following investors’ reactions to the conmpany’s 2015 full year results.

The cement firm ended the year with profit after tax of N181 billion and recommended a dividend of N8 per share. This performance attracted high demand by investors, that lifted the share price by 24 per cent or N33 per share to close at N168 per share. That gain added over N500 billion to the capitalisation of the stock last week.

Speaking at forum in Lagos on Monday, Dangote said the company has recorded a 47 percent growth in sales volumes between January and February 2016.

He said the company can export up to $500 million worth of cement annually from Nigeria to neighboring West African countries. He disclosed that 2018 – 2020 there will be no need by Dangote Group of businesses to get foreign exchange from the Central Bank of Nigeria (CBN).

Speaking on his sugar business, he said Dangote Sugar will stop imports of $1 billion worth of sugar into Nigeria in five year’s time.

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