Investors' Rush for Dangote Cement, BUA Cement, Others Pushes Nigeria's Stock Index to Record Level

Investors' Rush for Dangote Cement, BUA Cement, Others Pushes Nigeria's Stock Index to Record Level

  • The positive momentum in the Nigerian Equities Market persisted as mid-week trading concluded on an upbeat note
  • The benchmark NGX All-Share Index (NGXASI) witnessed a significant increase from 98,616.97 points to 101,571.11 points
  • This surge marks a new milestone as the index attains another all-time high, indicating a prevailing positive market sentiment journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

On Wednesday, January 24, Nigerian stocks continued their upward momentum for the tenth consecutive trading day.

This surge was fueled by increased investment in shares, leading to a significant rise in the All-Share Index (ASI), surpassing a record 100,000 basis points milestone.

The current level of the main stock index marks the pinnacle in the history of the Nigerian stock market.

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Dangote Cement, BUA Cement, NGX
This impressive performance follows the recent achievement of the Nigerian equity market, which surpassed Argentina's Photo credit - NGX, New African
Source: UGC

The favourable market performance for the day can be attributed to increased buying activities among investors, particularly in key stocks such as DANGCEM (+6.49%), GTCO (+0.47%), BUACEMENT (+9.98%), TRANSCORP (+4.51%), BUAFOODS (+5.59%), and an additional 30 stocks.

This follows significant milestones recorded in Nigeria's stock market in reaction to some of the reforms embarked upon by President Bola Tinubu since assuming office.

Key performance indices

According to data from the Nigerian Exchange, the all-share index climbed to a new peak of 101,571.1 points, marking a 3% increase in less than a week.

At the close of Wednesday's trading session, participants in the Nigerian equities market gained N1.61 trillion.

This gain was attributed to the rise in market capitalization, which surged from N53.967 trillion to N55.583 trillion compared to the previous day's figures.

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The market exhibited a positive breadth, with 35 stocks experiencing gains, 30 witnessing declines, and 52 maintaining their unchanged status across 12,080 deals.

This impressive performance follows the recent achievement of the Nigerian equity market, which surpassed Argentina's to become the top-performing bourse globally.

Over the past 52 weeks, the overall return on the Nigerian equity market stands at an impressive 93.1%.

A positive uptick in the NGX

The beginning of the year has seen a positive trend in the stock market of Africa's largest economy, driven partly by the central bank's alignment with the Nigerian Government's ambitious goal of achieving a $1 trillion economy by 2030.

This commitment was underscored late last year when the central bank mandated financial institutions to bolster their capital levels in support of this initiative.

This development has sparked heightened interest in bank stocks, notably contributing to the robust performance of the Nigerian stock market in recent weeks, as indicated by the significant movement of the NGX Banking Index.

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Additionally, the prevalence of negative real yields on fixed-income securities, fueled by elevated inflation rates, is prompting investors to redirect their capital from such assets towards stocks to recover and optimize their investments.

Performance by sector

The performance across sectors exhibited a mixed trend, with three out of five sectors within our assessment recording advancements, while two experienced declines.

According to additional data from Future Research, the Industrial Index emerged as the top performer, registering a notable gain of 7.64%.

The Consumer Goods and Oil/Gas indices followed closely, which recorded gains of 4.07% and 0.09%, respectively.

Conversely, the Insurance and Banking indices faced declines, posting losses of 1.52% and 0.61%, respectively.

Top gainers of the day

Dangote Cement stands as a pivotal force propelling the stock market, achieving a historic milestone as the first company to surpass the N10 trillion market capitalization threshold.

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The day's positive performance was attributed to investors' buying activities in major stocks like DANGCEM (+6.49%), GTCO (+0.47%), BUACEMENT (+9.98%), TRANSCORP (+4.51%), BUAFOODS (+5.59%) and 30 other stocks.

NoGainersClosing price% Change (+)

Top losers of the day

NEM Insurance took the lead among decliners in share prices, experiencing a 10% decrease to conclude at N7.20, down from its previous value of N8.00 per share.

Additionally, Cadbury Nigeria, The Initiate, and May & Baker witnessed declines of 9.96%, 9.92%, and 9.89% in their respective share prices.

McNichols also incurred a loss of 9.88%, closing at N1.46 per share.

NoLosersClosing price% Change (-)

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NGX's milestone signals strong investor sentiment

Reacting to the development, Chinyere Nnamdi, a stockbroker at the NGX, told that this is a testament to Nigeria's stock market's robust performance and economic vitality.

He said the milestone signals a strong investor sentiment, underlining the market's resilience and attractiveness.

He said:

Nigeria's stock market hitting the remarkable milestone of over 100,000 basis points in the All-Share Index signifies a significant achievement, reflecting positive market dynamics and investor confidence.
The noteworthy surge is likely indicative of a confluence of factors, including positive economic indicators, corporate performances, and global market trends.

He added that the achievement showcases Nigeria's economic growth and instils confidence in the investment landscape.

24 firms generate N13.94trn in nine months

In related news, reported that approximately 24 companies listed on the NGX amassed a collective revenue of N13.94 trillion during the first nine months of 2023.

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This marked a substantial 53.1% surge from the N9.1 trillion reported in the corresponding period the previous year.

MTN Nigeria disclosed a revenue of N1.77 trillion for the nine months in 2023, reflecting a 22% increase from the N1.46 trillion recorded in the same duration of 2022.

Meanwhile, Access Bank's revenue surged by 75.7%, reaching N1.59 trillion compared to N906.93 billion in the corresponding period last year.


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