Market View is constructive as bull case strengthens

During the week, the merger scheme between Benue Cement Company plc (BCC) and Dangote Cement plc (DCP, formerly Obajana Cement) was published. The document states that DCP will be offering minority shareholders in BCC one of its ordinary shares for two of BCC’s ordinary shares and that DCP’s shares will be listed and traded on the NSE from 5 November 2010. The market has reacted positively – BCC’s stock climbed 4% last week. We expect this sentiment to continue this week, although gains could be limited to NGN67.50 (4% upside) – BCC’s reference price for this transaction.... Full Story.