Stock Market Gains N2.32tn on Investors’ Demand for Dangote Cement

The Nigerian equities market kicked off the week on a bullish note as investors showed strong demand, propelling the value of Dangote Cement Plc. Dangote Cement experienced a notable 9.61% increase, driving the Nigerian Exchange Limited All-Share Index (NGX ASI) to climb 3,579.52 basis points, or 1.44% to close at 252,456.74 points.

This positive momentum highlighted a resurgence in investor confidence, lifting the benchmark index back towards the 250,000-basis point level. Consequently, the market capitalization of equities surged by approximately N2.32 trillion, reaching a total of N163.92 trillion at week's end.

Analysts attributed the market's bullish sentiment to robust buying interest and heightened trading activity, noting a significant rebound that propelled the index above the 250,000-point mark. Market breadth indicated a mixed sentiment, with 20 stocks gaining value against 28 that declined. Among the leaders were AXA Mansard Insurance, which surged by 9.75% to close at N12.95 per share, followed by Sovereign Trust Insurance with a 9.74% gain to close at N2.14.

Dangote Cement's impressive 9.61% rise to close at N1,469.90 per share led the gains, while Oando and Fidelity Bank also saw gains of 8.46% and 6.85%, respectively.

On the downside, Thomas Wyatt Nigeria experienced a steep 9.62% decline, closing at N2.35 per share, followed by University Press with an 8.70% drop to N4.20, and Fortis Global Insurance losing 7.38% to close at N1.38. The Initial Plc (TIP) and Zichis also saw declines of 6.88% and 5.59%, respectively. The total volume traded decreased by 20.0% to 453.31 million units, valued at N30.55 billion, with 42,891 trades completed during the session.

Looking ahead, Cowry Assets Management Limited suggested that sustained demand for large-cap stocks could sustain further market gains. However, they cautioned that negative market breadth and ongoing profit-taking pressures might curb broader upside momentum.