Dangote Cement Plc is now the largest capitalised listed company, surpassing Airtel Africa Plc and eleven other trillionaire businessesDue to investor interest, Dangote Cement’s market capitalisation increased to N8.16 trillion in November 2024Since President Bola Tinubu’s new administration took office, Dangote Cement and other businesses have experienced growth
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Dangote Cement Plc has surpassed Airtel Africa Plc and eleven other trillionaire companies to become the most capitalised listed stock on the Nigerian Exchange Limited (NGX).
The overall market capitalization of all companies listed on the Exchange is N59.107 trillion, of which Dangote Cement’s N8.16 trillion represents about 13.8%. Photo Credit: Dangote Group, Airtel
Source: UGC
The company’s market capitalisation reached N8.16 trillion in November 2024 due to investor demand. It is currently ahead of Airtel Africa at N8.11 trillion, BUA Foods at N7.11 trillion, and MTN Nigeria Communication at N3.57 trillion.
Due to the aggressive implementation of reforms like the elimination of fuel subsidies and the opening of the foreign exchange market, Dangote Cement and other companies have had an upward trajectory since the arrival of the new administration led by President Bola Tinubu.
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Due to their historically low market prices, foreign investors and high network investors have persisted in holding these 13 stocks despite the Central Bank of Nigeria’s (CBN) foreign exchange policy.
According to information obtained by THISDAY, Airtel Africa was the most valuable listed firm in October 2024, with a market valuation of approximately N8.27 trillion. Dangote Cement and MTN Nigeria Communication were next in line, with market capitalisations of N8.16 trillion and N7.11 trillion, respectively.
In its year-to-date performance, Dangote Cement’s stock price has increased by almost 50%, closing in November 2024 at N478.80 a share, up from N319.9 per share when it first opened for trading this year.
Dangote cement weighs big
Dangote Cement’s N8.16 trillion market capitalisation is roughly 13.8% of the N59.107 trillion total market capitalisation of all firms listed on the exchange.
As high financing and production costs ate up revenues during the nine months ending September 30, 2024, Dangote Cement’s profit before taxes increased marginally to N406.38 billion.
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Revenue rose 69.5% from N1.51 trillion in the nine months of 2023 to N2.56 trillion in the period under review, according to the company’s unaudited financial statement for the period ending in September 2024.
From N404.89 billion in the same time of 2023 to N406.38 billion in the period under review, the company’s earnings increased by less than N2 billion.
Due to near doubling of manufacturing costs and a more than 100% increase in financing costs, the company only managed to grow profit after tax by 0.56%, despite a 70% increase in revenues.
Other trillionaire companies on the Exchange include: BUA Cement, N3.22 trillion; Seplat Energy, N3.12trillion; Geregu Power, N2.88 trillion; Transcorp Power, N2.69 trillion and Aradel Holdings, N2.25trillion.
Guaranty Trust Holding Company Plc, N1.56 trillion; Zenith Bank, N1.4 trillion; United Bank for Africa Plc, N1.12 trillion and Transcorp Hotels, N1.09 trillion.
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Henzodaily.ng reported that despite the challenging operating environment, six banks have released their results for the half-year ending June 30, 2024, exceeding their 2023 results.
The six banks posted a pre-tax profit of about N979.19 billion, a 133 per cent increase over the N421.04 billion reported in the same period in 2023.
The banks include Ecobank Plc, FBN Holdings, Wema Bank Plc, Jaiz Bank Plc, FCMB Group Plc and Sterling Financial Holdings Company Plc.
Source: Henzodaily.ng