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.
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.
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.
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.
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.
These strong numbers may have added fuel to the recent surge, giving investors more confidence to enter the market.
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.