One Week After: DANGCEM Records -0.85% Price Depreciation; Volume Traded Grew by 291.98%

Proshare

Tuesday, July 31, 2018 02:25 PM / Proshare Research

Dangote Cement Plc share price has depreciated by -0.85% in the last one week after the release of its Q2 2018 financial results. The stock price opened on Monday last week at N236.00k, thereafter it dropped to N234.00k at the close of trading on Thursday 26th July 2018 and has remained at this price till date.

Figure 1: Dangote Cement Plc Share Price Movement from July 20, 2018 to July 30, 2018.

Proshare Nigeria Pvt. Ltd.

Source: NSE, Proshare Research

The total volume traded on DANGCEM one week before the release of its Q2 2018 results was about 2.02m volume of shares while this increased to 7.94m one week after the Q2 2018 results was released.

This reflects an improved sentiment towards the stock after the result was released and thus necessitating in the -0.85% drop one week after. The 7.94m volume traded one week after represents 291.98% growth over the volume traded a week before the results was published.

Figure 2: Dangote Cement Plc Volume of Share Traded from July 20, 2018 to July 30, 2018.

Proshare Nigeria Pvt. Ltd.

Source: NSE, Proshare Research


One Week Before

 

One Week After

Date

Volume Traded

 

Date

Volume Traded

13-Jul-18

993630

 

23-Jul-18

2391998

16-Jul-18

35156

 

24-Jul-18

2125440

17-Jul-18

476379

 

25-Jul-18

1566520

18-Jul-18

66598

 

26-Jul-18

1810741

19-Jul-18

61321

 

27-Jul-18

6642

20-Jul-18

393785

 

30-Jul-18

43491

Total

   2,026,869.00

 

Total

     7,944,832.00

Source: NSE, Proshare Research


Market Sentiment

The stock, DANGCEM, has recorded about -0.64% drop in share price in the last one year while it has appreciated by +1.74% YTD.

 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Source: TheAnalyst

 

What The Analysts Are Saying

Date of Publication

CMOs

Recommendation

Remarks

23-Jul-18

Vetiva

BUY

With a revised target price of 276.28 on the stock, we maintain our BUY rating.

24-Jul-18

ARM

Neutral

Going forward, we reiterate our positive outlook on DANGCEM and expect the company to sustain earnings growth over 2018, at a faster pace than our earlier estimate as we are now more positive on the writeback of the tax provisions booked thus far.

23-Jul-18

Investment One

NA

Overall, the results were headlined by stronger top line performance as well as FX losses which weighed on volume gains and margin stability in 2018.

20-Jul-18

CardinalStone

NA

Looking at DANGCEM’s results holistically, we are optimistic about the company’s ability to further drive top line growth. We are convinced that increased demand by the private sector, as well as public-private partnerships (PPP) should continue to spur demand in the Nigerian segment. Similarly, we expect resumption of operations in Tanzania to boost performance in the Pan-African segment. Also, we believe that input costs will remain modest going forward, as the more expensive LPFO (2.53x the of gas) has been totally eradicated from use in its Obajana and Ibese plants. Thus, we see scope for further expansion for operating margin. However, we are worried about the potential impact of further FX losses on overall bottom line, as this poses a downside risk to our expectations. Based on our last review, our price target for DANGCEM is N291.69.

Source: CMOs

The peer comparison of the cement stocks showed that DANGCEM and WAPCO share prices declined by -0.85% and -15.38% respectively in the last one week while CCNN appreciated by +20.48%.

Figure 3: Peer Comparison of Shares One Week After

Proshare Nigeria Pvt. Ltd.

Source: NSE, Proshare Research

 


Related News

1.        Dangote Cement PLC H1 2018: On Track For a Strong FY’18 Performance

2.       DANGCEM Q2 2018 Results: PAT Came In Behind Estimate By c.37%

3.       Dangote Cement Plc Announces Its Closed Period

4.       Dangote pays 90% of net profits as dividend

5.        DANGCEM Declares N113.16bn PAT in Q2 2018 Results,(SP:N230.00k)

6.       Dangote Cement Plc Is Firing On All Cylinders; On Track For A Strong FY’18 - BUY with TP Of N289.45

7.        Dangote Cement Plc Q1 2018 - Improved Margins Underpin Earnings Growth – ARM Research  Apr 24, 2018

8.       Dangote Cement Reports Q4 2017 Results - Sales and PBT Up By 17% YOY and 116% YOY Respectively  Mar 20, 2018

9.       Dangote Cement Plc - Don't Lose Much Sleep Over 2018 - Proshare  Oct 24, 2017

10.   DANGCEM Declares N72.12bn PAT in Q1 2018 Results,(SP:N248.0k)

11.     Dangote Cement Plc Appoints Cherie Blair and Mick Davies as Independent Non- Executive Directors

12.    Dangote Cement Plc Announces Closed Period

13.    Dangote Cement Plc- Improved Margins But Growth Momentum Cools Off

14.    Dangote Cement Plc Plans to Raise $833m Via Bonds to Fund Expansion

15.    DANGCEM Declares N204.25 bn PAT in 2017 Audited Results,Proposes N10.50K per share Dividend

16.    Dangote Cement Plc Announces Closed Period

 

 

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