Investors in the cement manufacturing companies listed on the Nigerian Exchange Limited have had their wealth increased by about N715.89bn in the third quarter of the year.
This was contained in the trading statistics of these companies which include Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc tracked by The PUNCH.
The rise in wealth of investors is on the back of positive sentiments witnessed in at least two of the listed companies, whose market capitalisation and share price increased within the period under review.
In the period under review, Dangote Cement listed under the industrial goods sub-sector of the NGX recorded the highest value of increase amongst the three cement companies. It recorded a gain of N937.22bn gain during Q3, 2023.
The cement stock grew by 19.29 per cent to close at N340 per share and its market capitalisation stood at N5.79tn as of the end of September from N4.85tn as of June 30, 2023. Its shares closed out the half year priced at N285 per unit.
Another cement manufacturer, Lafarge Africa Plc, also grew its market cap and share price within the three months under review. Lafarge’s market capitalisation rose by 1.52 per cent or N7.24bn from N475.17bn to N482.42bn. Its share price increased by the same percentage to N29.95 per unit from N29.5.
In its half-year report, Lafarge Africa had said that in terms of its outlook, it is positive that the Nigerian construction sector would continue to grow despite rising inflation and its effects on the purchasing power of Nigerians.
It said, “The Nigerian Infrastructure and Construction Sector are expected to continue to grow despite inflationary pressure on purchasing power. As a result, we maintain our positive outlook, with market recovery expected for the second half of the year. We will continue to maximize volume opportunities across our markets and actively manage our costs. The company remains committed to its sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivery of stakeholder value.”
Of the three cement companies, BUA Cement recorded a decline in its market capitalisation and share price in Q3. BUA Cement Plc also listed in the industrial goods sub-sector of the NGX lost about N228bn at the end of Q3.
Its share dropped by 6.75 per cent to N85.5 per share and N2.89tn in market capitalisation as against N92.25 and N3.12tn in market capitalisation as of June 30, 2023.
According to CardinalStone Securities Limited, over the last two decades, the Nigerian cement sector has evolved from import-dependent into a growing hub for cement export. Federal government policies, including tax relief programmes and cement importation ban, have encouraged local players’ emergence and subsequent expansion. The latter has driven installed capacity beyond domestic demand (57.7MT vs 29.5MT).
SOURCE: PUNCHNG
