Nigerian Exchange Sees N1.75 Trillion Surge as Dangote Refinery IPO Concludes

The Nigerian Exchange Limited (NGX) experienced a notable upward trend on Tuesday, October 27, as market capitalization climbed by N1.75 trillion. According to data reported by Daily Post Nigeria, the total market value rose to N164.91 trillion, up from the N163.16 trillion recorded in the previous trading session.

Market Performance and Index Growth

The NGX All-Share Index saw a 1.07 percent increase, moving from 251,290.54 points to 253,990.06 points. This performance has pushed the market’s year-to-date return to 63.22 percent. The surge in valuation was primarily attributed to strong performance in the industrial sector, with Dangote Cement playing a pivotal role by advancing 9.80 percent to close at N1,341.90 per share.

Disparity in Market Breadth

Despite the significant gains in the benchmark index, the broader market showed signs of uneven performance. Market breadth remained negative, with 36 stocks recording losses compared to only 20 gainers, resulting in a market breadth ratio of 0.56 times. This suggests that the overall index growth was heavily influenced by a select group of high-performing stocks rather than a widespread rally across all listed equities.

Top Performers and Laggards

The list of gainers was led by:

• UPDC Real Estate Investment Trust
• Dangote Cement
• Honeywell Flour Mills
• Africa Prudential
• Nigerian Aviation Handling Company

Conversely, the session saw notable declines in stocks such as Presco, Tripple Gee and Company, Thomas Wyatt Nigeria, Austin Laz and Company, and Transnational Corporation of Nigeria.

Trading Activity and IPO Conclusion

Trading activity saw extreme volatility in volume and value. While the number of deals fell by 17.74 percent, trading volume surged by 1,488.14 percent, and the total transaction value jumped by 1,634.62 percent. In total, 35,946 deals were recorded, involving 5.23 billion shares valued at N441.47 billion.

A significant milestone for the exchange was the conclusion of the Dangote Refinery initial public offering (IPO). The offering, which consisted of 4.1 billion ordinary shares priced at N525 each, officially closed on Tuesday following a previously announced extension of the subscription window.

Conclusion

The recent activity on the NGX highlights a period of intense investor interest, particularly surrounding the conclusion of the Dangote Refinery IPO. While the headline figures indicate a substantial increase in market wealth, the negative market breadth serves as a reminder of the selective nature of the current rally. Investors continue to monitor how these large-scale industrial movements will impact the broader market landscape in the coming weeks.

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p class=”vbna-source-note”>Source: Daily Post Nigeria

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