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Three cement companies listed on the Nigerian Exchange Group Plc (NGX) (Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc) collectively gained approximately N7.921 trillion in value by the end of the first quarter of 2024, as reported in their trading statistical report.
Despite facing economic challenges such as high inflation, a weakening exchange rate, and ongoing security concerns, the shares of these companies performed well.
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This positive sentiment was reflected in notable shifts in purchasing behavior, resulting in the All-Share Index closing at 104,562.06 index points at the end of the quarter.
Furthermore, the year-to-date (YTD) return of the NGX All-Share Index stood at an impressive 39.84%, indicating resilience in the market.
Dangote Cement Plc, a major player in the cement industry, led the pack with a gain of approximately N6.250 trillion during the first quarter of the year. The company’s stock price rose by 114.66% to close at N686.70 per share, resulting in a market capitalization of N11.701 trillion.
BUA Cement Plc followed with a gain of about N1.565 trillion during the period. Its stock price increased by 47.6% to N143.20 per share, with a market capitalization of N4.849 trillion.
Lafarge Africa experienced a marginal growth of 20.79%, reaching N38.05 per share and a market capitalization of N612.901 billion.
Market experts, including Mr. David Adonri from Hicap Securities Limited and Mr. Olatunde Amolegbe from Arthur Steven Asset Management Limited, noted that despite rising interest rates, certain sectors like consumer goods, banking, and industrial goods, including cement, remain attractive to investors.
They attributed the market’s resilience to the increased participation of local institutions and retail investors, as well as expectations of policies encouraging foreign investment inflows.
Additionally, the anticipation of short-term inflation increases contributed to the stock market rally.
