In the trading week ended July 18, 2025, the Nigerian industrial sector delivered a standout performance, soaring 19.17% to lead both sectoral and overall market gains.
Tracked by the NGX Industrial Goods Index, the sector opened the week at 3,681.2 and, supported by a trading volume of 158 million shares, closed at 4,386.8.
The bulk of the rally came in the final two sessions, with a 9% surge on Thursday followed by a 5.6% gain on Friday, sealing a powerful finish to an already positive week.
Boosted by advances in heavyweight equities, the sector not only recorded its best weekly performance of the year but also helped propel the Nigerian All Share Index (NGX ASI) to a 4.31% gain.
But what was the spark behind this impressive surge in the industrial goods index? A closer look at the likely drivers is essential.
Continuations
A key driver behind the industrial sector’s resurgence is the ongoing bullish continuation in Dangote Cement and BUA Cement, the two most capitalized stocks in the sector.
This rebound comes after a prolonged pullback that began as far back as the first quarter of 2024 and stretched for over a year before tapering off in Q2 2025.
- Dangote Cement, for instance, closed at a high of N763 in January 2024, before entering a decline that began in February and extended through Q1 and early Q2 2025, dragging the stock below N500.
- BUA Cement’s trajectory was similar. After reaching a fresh high of N185 in January 2024, the stock continued its retracement from February 2024 through May 2025, falling below N90.
With market capitalizations of N6.9 trillion for Dangote Cement and N5.2 trillion for BUA Cement—accounting for 46.6% and 35.2%, respectively, of the NGX Industrial Goods Index—their extended downtrends effectively weighed on the broader index.
- The NGX Industrial Goods Index, after peaking at 5,666.5 in Q1 2024, lost more than 2,400 points as it mirrored the retracement structure of its cement heavyweights, declining steadily from February 2024 into April 2025.
However, a decisive bullish continuation took hold in June 2025 and intensified through July, particularly in the week ended July 18, as Dangote Cement and BUA Cement rallied by 16% and 31%, respectively.
In response, the NGX Industrial Goods Index also began to climb, suggesting investors are re-entering the market, likely eager to buy the dip.
Buying the dip
Investors now seem to be stepping in to buy the dip in both Dangote Cement and BUA Cement, likely encouraged not just by the recent price pullbacks but also by strong fundamentals, including impressive Q1 2025 results and attractive dividends.
- Dangote Cement reported a post-tax profit of N209.2 billion, up 85.71% from the previous year. Its retained earnings rose to N1.2 trillion, up 20.74%, and it paid a generous N30 dividend per share.
- BUA Cement also impressed with a pre-tax profit of N99.7 billion, a massive 368.58% increase year-on-year. Its retained earnings climbed to N256.8 billion, up 46.17%, and it declared a N2.05 dividend per 50 kobo share.
These strong numbers may have added fuel to the recent surge, giving investors more confidence to enter the market.
- On the technical front, Dangote Cement broke past a key resistance level at N480, closing last week at N495, and could be heading back toward its January 2024 high around N700.
- BUA Cement, meanwhile, aims to clear N140, with possible upside toward N170 and beyond.
Together with Lafarge Africa, which has stayed strong throughout the broader sector dip, and supported by other solid mid-cap stocks, these cement giants are likely to keep driving the Industrial Goods Index higher in the weeks ahead.
