Billionaire investor Femi Otedola’s acquisition of shares in Dangote Cement Plc has triggered an upswing in the stock market.
The news of the investment by Femi Otedola has spurred heightened interest among investors, resulting in a surge in both Dangote Cement and its competitor, BUA Cement.
Following the announcement of Femi Otedola’s foray into Dangote Cement, the company witnessed a surge in share prices, experiencing a significant increase of 9.98% on January 19, 2024. The closing price stood at N538.8, pointing to the impact of Otedola’s strategic investment.
Market data indicates a strong demand for Dangote shares coupled with minimal selling activity, highlighting the bullish sentiment surrounding the stock. This surge is part of a broader positive trend, as Dangote Cement had already gained 8.27% on January 18. The year-to-date return for the company now stands at 68.9%, making it the top-performing SWOOT stock on the NGX.
Furthermore, the market capitalization of Dangote Cement has seen a commendable increase, climbing to N9.18 trillion. This represents a capital gain of N3.215 trillion in just one week, solidifying Dangote Cement’s position as a standout performer in the market.
Interestingly, the move by Femi Otedola appears to have had a ripple effect on Dangote Cement’s competitor, BUA Cement. BUA Cement’s shares experienced a 10% gain on January 19, closing at N148.5. This positive momentum adds to a weekly gain of 45.8% and a year-to-date appreciation of 53.1%, making BUA Cement one of the best-performing stocks on the NGX.
The increased market cap for BUA Cement is noteworthy, rising from N3.45 trillion to N5.03 trillion in the span of a week. This surge signifies a capital gain of N1.58 trillion, further establishing BUA Cement as a strong contender in the market.
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