Nigeria’s Industrial Goods sector delivered a stellar performance last week, surging by 19.17% the highest weekly gain among all sectors on the Nigerian Exchange (NGX). The rally was driven predominantly by cement giants Dangote Cement and BUA Cement, which posted significant gains on the back of robust earnings and technical momentum.
Sector Snapshot
The NGX Industrial Goods Index climbed from 3,681.2 to 4,386.8 points during the week ended July 18, fueled by renewed investor interest and impressive trading volumes, which reached approximately 158 million shares.
Midweek trading saw particularly sharp movements, with the index jumping 9% on Thursday and another 5.6% on Friday, pushing the sector into bull territory after months of muted performance.
Cement Leaders at the Helm
The rally was spearheaded by the market’s top industrial names:
Dangote Cement recorded a 16% price gain.
BUA Cement surged by an even more impressive 31%.
Together, the two companies command over 80% of the Industrial Goods Index, with Dangote Cement holding a 46.6% weight and BUA Cement 35.2%.
Both stocks rebounded from prolonged price stagnation, aided by bullish sentiment stemming from their recently released earnings reports and dividend declarations.
Strong Fundamentals
Dangote Cement
Profit after tax: ₦209.2 billion (+85.7% YoY)
Retained earnings: Up 20.7%
Dividend: ₦30 per share
BUA Cement
Pre-tax profit: ₦99.7 billion (+368.6% YoY)
Retained earnings: Up 46.2%
Dividend: ₦2.05 per 50 kobo share
These figures signaled strength and resilience despite economic headwinds, boosting investor confidence across the board.
Technical Breakouts Add Fuel
In addition to strong fundamentals, both stocks broke key resistance levels:
Dangote Cement crossed the ₦480 threshold, closing the week near ₦495 with analysts eyeing a return to ₦700 levels seen in 2023.
BUA Cement advanced past the ₦140 mark, now on track toward ₦170 if momentum holds.
Technical analysts point to high-volume breakouts as confirmation of renewed upward trends.
Wider Market Impact
The cement-led rally reverberated across the broader market. The NGX All-Share Index gained 4.31% during the week, largely driven by strength in the Industrial Goods and Banking sectors.
Looking Ahead
With earnings season in full swing, all eyes remain on whether the momentum can be sustained. Market watchers believe the recent gains may be just the beginning for cement stocks, especially if infrastructure spending and construction activity increase in the second half of the year.