Dangote Cement board of directors are to meet after the company’s market stock bubble burst, costing shareholders of the firm N78.38 billion in one month.
In its filing to the Nigerian Exchange Group on Friday, it was gathered that the board meeting will hold next month, October 31, 2021, with one of the discussion expected to be the Q3 financial statement.
In respect to the upcoming meeting, Dangote Cement has barred persons in possession of sensitive financial materials from trading on the company’s stock from October 1, 2021, until 24 hours after the results has been released.
This restriction comes a month after investors lost N78.38 billion due to a 2 percent drop in Dangote Cement’s stock market value between August 27 and September 23.
The loss was triggered by sell off among some shareholders who engaged in profit-taking following the firm’s stock bubble which was driven by the release of Q2 2021 financial record
Dangote cement had reported that its revenue grew 43.3 percent year-on-year in Q2, generating N357.89 billion, against the N227.67 billion turnover in Q2 last year.
Investors responded positively to the revenue report in August, and Dangote Cement’s stock was already trading at a high of N249.60 kobo as of August 23, in contrast to the N240/N248.10 kobo it sold for a week after Q2 result release.
The August bubble, however, didn’t last, as some stakeholders began to sell their shares in exchange for the profit gained on their investment last month.
The sell off crashed Dangote Cement’s market value to N4.17 trillion as of Thursday, against the N4.25 trillion it had on August 27 – the 2 percent decline represents a loss of N78.38 billion