Dangote Cement lifts Nigerian stocks for third day

Dangote Cement lifts Nigerian stocks for third day

Wednesday, March 2, 2016 4:21 pm

Nigerian stocks are still riding comfortably on the back of Dangote Cement, owned by Africa’s richest man, Aliko Dangote.

The index rose to a seven-week high on Wednesday, driven by gains in Dangote Cement after the company proposed to increase its full-year dividend by 33 percent to 8 naira ($0.04) per share.

Shares in Dangote Cement, which accounts for a third of the total market capitalisation of the bourse’s constituents, rose by 7 percent to 162 naira after its 2 percent rise in pretax profit for 2015 and dividend increase.

Nigeria’s all-share index, which has the second-biggest weighting behind Kuwait on the MSCI frontier market index, was up 2.5 percent at 25,448 points by 1159 GMT, its highest level since Jan. 13.

“Some investors were excited by the dividend payout by Dangote Cement and this has boosted interest in the shares,” one stock dealer said.

Tiger Brands, also majority owned by African billionaire Aliko Dangote, was another gainer, rising 9.3 percent.

Zenith Bank was up 4.7 percent, Dangote Sugar rose by nearly 5 percent and Pan African banking group Ecobank Transnational Inc gained 2.4 percent.

The financial report of Africa Prudential will also bolster market sentiments with higher turnover and PAT reported for 2015.

The company, part of the UBA PLC empire reported gross earnings of N2.543 billion in 2015, as against N1.832 billion in 2014.

Profit after tax also jumped to N1.4 billion, from N1.03 billion in 2014.

The company in its filing did not announce the dividend payout.

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