Despite the Kogi State Government’s invasion of Dangote Cement Plc’s Obajana Cement plant on Wednesday, the company’s share price has remained unchanged.
The invasion, which allegedly resulted in the shooting of several Dangote cement plant workers in Obajana by the state’s security outfit, was harshly condemned by the operators of the Organized Private Sector (OPS) under the auspices of the National Association of Chambers of Commerce, Industries, Mines, and Agriculture (NACCIMA).
According to reports, the company’s share price opened trading at N245.00 and a market capitalization of N4.175 trillion on Wednesday 5th, before the invasion, and closed at the same share price and value at the close of trading on Friday 7th of October 2022.
According to Mr. Mike Eze, managing director of Crane Securities Limited, the stock’s price stability in the face of crisis demonstrated positive sentiment despite the current bear run.
- There are other factors that investors consider apart from the fundamentals when deciding to invest in stocks.
- “Share performance of a company goes beyond fundamentals, The share price can be influenced by past information, publicly available information, and information not disclosed to the public.”
Shares Information
- The share price is down 6% in the last year while trading at a price-to-earnings ratio of 12.19x. The current dividend yield is also around 9%.
- Aliko Dangote and institutional investors largely own Dangote shares. According to its annual report, Dangote Industries Limited and Stanbic nominees own over 90% of the company.
- “All shares other than treasury shares and shares held by Dangote Industries Limited (85.8%) and Aliko Dangote (0.16%) are considered free float shares.”
- This perhaps explains why the Kogi state threat will do little to hurt share price performance.
What Kogi State is saying
On Thursday, the Kogi State Government presented the report of the Specialised Technical Committee on the Evaluation of the Legality of the Alleged Acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited.
What Dangote Management said
However, the management of Dangote Cement Plc had stated that the Obajana Cement plant in Kogi State is owned 100% by it and that the invasion of the plant last Wednesday by armed vigilantes on the orders of the state government was illegal.
