Dangote Cement is the most capitalized stock on the Nigerian Stock Exchange (NSE) and contributes 25 per cent (+-1% based on a normal curve) of the total market capitalization of all listed companies on the Nigerian Stock Exchange, a study by Thaddeus Investment Advisors and Research Limited has confirmed. According to the research, only 20 per cent of the company’s shares are listed, unlike other companies’, which is 25 per cent, and Dangote Cement could have even had a more influential hold on the Nigerian Stock Market if 25 per cent of its authorized and fully-paid up shares were listed.
As at 18th April 2013, there have been 74 trading days in Nigeria so far in 2013, and Dangote Cement has traded on all 74 trading days. The company had an unchanged price performance on 24 per cent (18 trading days) of the 74 trading days and either advanced or declined on the other 56 trading days.
The study further asserted that “9.29 per cent of the 13.4 per cent ASI January 2013 performance was solely due to Dangote Cement. The Nigerian Stock Market would have only risen by 4.11 per cent if Dangote Cement was not a listed stock on The Nigerian Stock Exchange.
“If Dangote Cement was not listed on the Nigerian Stock Exchange, the ASI index would have declined 1.59 per cent between February 1st and April 18th 2013. Instead, the ASI gained 6.38 per cent.
“67.5 per cent of the Nigerian Stock market’s performance as at April 18th 2013 is single-handedly due to Dangote Cement. 11.56 per cent of the country’s All-Share Index YTD performance (as at April 18th) of 17.13 per cent is solely attributable to Dangote Cement.
“Dangote Cement has gained more (held mutually exclusive) than the ASI index from February 1st to April 18th, 2013. The Nigerian Stock Market has only risen 5.57 per cent YTD as at April 18th 2013 If Dangote Cement was not listed on the NSE. Instead, we have a YTD for the market of 17.13 per cent.”
The study further showed that so far in 2013, for every three trading days that Dangote Cement moved, it rose on two of the three occasions and fell on one of the three occasions on average.
It described the company as one playing “such an integral role in the stock market performance of any country,” shining light on the stock instead of the market. It added that while “other stocks will arouse people’s curiosity, while Dangote Cement will get people’s attention.”
