By gaining 276.11 per cent, Dangote Flour Mill (DFM) Plc has emerged the best performing stock in 2016 in percentage terms.
Figures sorted and calculated from the cumulative daily statistics of the Nigerian Stock Exchange (NSE) for the period showed the stock opened the year 2016 at N1.13 and appreciated by 276.11 per cent to close trading at N4.65 per share.
One of the factors that have endeared the president of Dangote Group, Alhaji Aliko Dangote to invest in the nation’s capital market was his decision to list some of his companies on the Nigerian Stock Exchange (NSE). That decision gave opportunity to investors to share from his wealth through dividends payment. The first company in the Dangote Group to list on the NSE was Dangote Sugar Refinery.
Besides, Dangote Cement also became the most capitalised on the exchange, Dangote Flour Mills (DFM) and Nascon Allied Industries. These companies have been rewarding shareholders with dividends.
DFM under Tiger Brands struggled with losses. External auditors to TBCG- Akintola Williams Deloitte, underscored the dire state of the flour-milling company in the latest audit, expressing worries that accumulated losses and continuing decline in operational performance that had wiped out shareholders’ funds could threaten the survival of the ailing flour-milling company.
Analysts say the repositioning strategies put in place after its re-acquisition from Tiger Brands by Dangote Industries Limited had yielded fruit by returning Dangote Flour Mills back to profit and made the stock share price to be the best performing in 2016.
