Investor Appetite Pushes Cement Stocks To N20.97tn Market Value

Nigeria’s three publicly listed cement manufacturers added a combined N8.54trn in market value in 2025, underscoring strong investor appetite for industrial stocks amid a year marked by inflationary pressures, exchange rate volatility and lingering security concerns.

Data compiled from trading statistics on the Nigerian Exchange Group Plc (NGX) showed that Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc grew their combined market capitalisation to N20.97trn at the close of trading on December 31, 2025, from N12.43trn at the beginning of the year.

The increase represents a 68.68 per cent expansion in value, positioning the cement sector as one of the strongest contributors to the NGX’s historic performance in 2025.

The rally in cement stocks occurred against the backdrop of a broader equities market surge, with Nigerian equities delivering an estimated N36.62trn in capital gains over the year.

Despite elevated inflation, foreign exchange instability and political uncertainties, investor sentiment remained resilient, driving sustained buying interest across key sectors of the market.

Figures from Nigerian Exchange Limited indicated that the benchmark All-Share Index rose by 51.19 per cent year-to-date, climbing from 102,926.40 points at the start of 2025 to a record 155,613.03 points by year-end.

Market capitalisation mirrored this bullish trend, expanding from N62.76trn to N99.38trn, reflecting growing confidence in equities as a hedge against inflation and currency risks.

Within the cement segment, BUA Cement Plc emerged as the standout performer. The company recorded an estimated N5.38trn increase in market value during the year, closing at N2,270 per share with a market capitalisation of N8.53trn.

This compares with an opening share price of N93 and a market value of N3.15trn at the start of trading in January, highlighting the scale of investor re-rating witnessed over the period.

Dangote Cement Plc followed with a market capitalisation gain of about N2.12trn in 2025. The stock appreciated by 27.19 per cent to close at N609 per share, lifting its market value to N10.28trn from N8.16trn at the beginning of the year, when it traded at N478.80 per share.

Lafarge Africa Plc also posted solid gains, with its share price rising to N134.50 by year-end and market capitalisation increasing to N2.17trn, compared with N69.95 per share and N1.13trn in market value at the start of 2025.

Market analysts attributed the strong performance of cement stocks and the wider equities market to a combination of policy reforms, improving market structures and robust domestic investor participation.

The sector’s resilience was further supported by optimism around infrastructure development and the role of industrial goods companies in Nigeria’s long-term economic growth.

Commenting on the market’s performance, Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said 2025 demonstrated the Nigerian capital market’s capacity to withstand domestic and global economic headwinds.

He noted that policy consistency, purposeful reforms and strategic collaboration were critical to strengthening investor confidence and sustaining growth.

According to Popoola, efforts to advance economic reforms and improve market structures during the year helped support a stable environment for capital formation, while continued investment in technology enhanced access, transparency and operational efficiency across the market.

He added that NGX Group remains focused on deepening partnerships with regulators, issuers, market operators and policymakers in 2026 to sustain momentum and position the Nigerian capital market as a key driver of economic growth and wealth creation in Africa.

Executive Vice Chairman of Hicap Securities Limited, David Adonri, said strong corporate earnings, particularly half-year results from banks and other large-cap companies, provided a boost to equities during earnings season and helped maintain the market’s upward trajectory.

He noted that investors were increasingly looking beyond short-term political risks, adopting a forward-looking approach that continued to fuel optimism.

Similarly, the Managing Director of Arthur Steven Asset Management Limited, Olatunde Amolegbe, highlighted the growing influence of domestic investors in shaping market behaviour.

He said increased local participation had reduced volatility and enhanced market resilience, while recent government reforms aimed at attracting foreign investment and stabilising the economy had strengthened investor confidence. According to him, equities remained attractive despite persistent inflationary pressures.

Market watchers said the strong year-to-date performance reflects a maturing Nigerian capital market characterised by improved liquidity, deeper domestic participation and renewed confidence in the economy’s long-term outlook.

Despite prevailing macroeconomic challenges, the 2025 performance has cemented Nigeria’s position among Africa’s best-performing bourses, with resilient corporate earnings and sustained investor engagement underpinning market growth.