Dangote Cement shares trade in off-market deals worth $236mn

Dangote Cement, a leading player in the local and foreign investment scene, saw its shares fluctuating on the market as it announced a $236 million stake sale to foreign investors. The Managing Director of Main Street Bank Securities, Baba Egraim, provided insights on the trading day. Dangote Cement's robust financial performance, including a profit after tax of $85 billion in 2016 and $1.44 billion in the first half of 2017, has piqued investor interest, indicating strong potential for the stock. With its current price around $240, Baba Egraim believes that the stock is not overpriced, especially considering its ventures in sectors like petrochemicals, expected to be robust in 2018 and 2019. Additionally, companies like Presco and Okomu Oil have become favorites among long-term investors due to their consistent beating of analyst estimates. The government's support and incentives in the agricultural sector have contributed to their impressive performance. Despite the low float of these stocks, their future prospects remain promising. Looking ahead, the banking sector is eagerly awaiting dividend payouts from major players like Access Bank, GT Bank, and Zenith Bank. While Baba Egraim doesn't anticipate significant share price movements post-announcement, he emphasizes the importance of evaluating impairment levels in the results to gauge sector health. The downward trend in impairments seen in FBN Holdings and Zenith Bank's H1 results is a positive sign for the sector's recovery, hinting at potentially encouraging outcomes for the upcoming results of major banks. Overall, market observers are keenly watching these developments to assess the implications for investor decisions and market performance.