DANGCEM's Off-Market trades: Much more than meets the eye? - An Opinion

Proshare





Thursday, October 10, 2013 2:10 PM / Research

  

We have placed Dangote Cement Plc on TheANALYST watch list. In the recent time, the firm had recorded significant patronage off-the-market, suggesting institutional interest as the stock traded 28 milllion units off-market, valued at N5.09billion.




An off-market deal usually involves buying or selling shares (not in an official trading session). It could be before or after the stipulated trading hour. Note - this does not make the trade illegal.

 

Technically, what this transaction suggests is that in the last two days, the firm has been recording special patronage/attention, the reasons of which are yet to be deciphered or available to the investing public. Though, the volume traded off market so far could appear insignificant (less than 1% of total shares) when compared the shares outstanding of the firm.

 

However, the off-market deal attracts our attention as it points to something yet to unravel.

 

Technically, the volume traded (28million units) in 2-days, in an off-market-deal, would  suggest a specific interest towards/in the firm, which of course is institutional, considering the value - N5.09 billion.

 

Further, the minority investing publics should pay attention and gain a full understanding of the transaction using the volume analysis provided below which reveals significant weight of the off-market deal against both the YTD volume traded and MTD volume traded.



The above indicates that BIG or SMART money moved into Dangote Cement off daily market record.

 

The big question is why and for what purpose? Let’s all keep an eye on the trend, which according to our tradition means that we shall keep you updated as the events/transactions unfold.

 

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