KEY POINTS

• The NGX All-Share Index rose 1.65% on Monday to 251,290.54 points, adding ₦2.64 trillion to market capitalisation.
• Dangote Cement gained 10% for a second consecutive session, helping lift the industrial index by 5.37%.
• Market capitalisation reached about ₦163.15 trillion, while the year-to-date return climbed to 61.48%.
• Trading volume fell 46.13%, but the value of shares traded rose 9.98%, largely because of Dangote Cement’s contribution.
• The naira weakened to ₦1,367.61 per dollar at the official market window, while Brent crude fell 1.58% to $114.87 per barrel.

MAIN STORY

Nigeria’s stock market added ₦2.64 trillion in value on Monday as gains in Dangote Cement and major banking stocks pushed the Nigerian Exchange (NGX) All-Share Index up 1.65%, extending its recovery for a second consecutive session.

The benchmark index closed at 251,290.54 points, up from 247,222.27 points on Friday. Market capitalisation rose to approximately ₦163.15 trillion, while the market’s year-to-date return improved to 61.48%.

The index gained 4,068.27 points, about 1.8 times Friday’s increase of 2,265.33 points. However, it remained 0.53% below its September 28 closing level of 252,635.11 points, according to Proshare’s calculations.

Dangote Cement led the rally with a 10% gain for the second consecutive session. The increase helped lift the NGX Industrial Index by 5.37%. Other major gainers included NGX Group, which rose 8.20%, First HoldCo, up 7.56%, Access Corporation, up 4.15%, and Guaranty Trust Holding Company, which gained 2.54%.

Zenith Bank rose 1.26%, while United Bank for Africa gained 0.25%. These gains helped push the banking index up 2.34%.

Despite the benchmark’s strong performance, market breadth remained negative, with 24 stocks recording gains against 30 decliners. This indicates that the market’s advance was driven by a relatively narrow group of stocks rather than a broad rise across listed companies.

Trading activity presented a mixed picture. The volume of shares traded fell 46.13% to 329.53 million units, but the value of transactions increased 9.98% to ₦25.45 billion. The number of deals also rose 30.12% to 43,700.

Dangote Cement accounted for ₦6.39 billion, or 25.11%, of the day’s traded value. Zenith Bank recorded the highest trading volume, with 25.92 million shares, representing 7.87% of the total.

The concentration of trading value in Dangote Cement is important. Excluding the company, the value of shares traded was ₦19.06 billion, about 17.6% below Friday’s ₦23.14 billion. This suggests that the increase in total market value traded did not reflect stronger spending across the market as a whole.

In the foreign exchange market, the naira weakened by 0.42% to ₦1,367.61 per dollar at the Nigerian Foreign Exchange Market window. The average rate at bureau de change operators remained unchanged at ₦1,375 per dollar, narrowing the gap between the two rates to 0.54% from 0.97%.

International commodity markets moved in different directions. Brent crude fell 1.58% to $114.87 per barrel, while West Texas Intermediate declined 2.26% to $100.94. Gold rose 0.63% to $4,023.74 per ounce, and silver gained 0.18% to $54.19.

Despite the decline in crude prices, Nigeria’s oil and gas index advanced 0.88%, supported in part by a 2.48% gain in Aradel Holdings.

Meanwhile, seven listed companies filed their third-quarter 2026 financial statements on Monday. They were International Breweries, United Capital, NPF Microfinance Bank, NCR Nigeria, Union Dicon Salt, Ikeja Hotel and UH Real Estate Investment Trust. Chams Holding Company and The Initiates also filed notices of board meetings.

Outside the listed equities market, the NASD over-the-counter securities index fell 1.26% to 4,290.25 points. The exchange recorded no gainers and three decliners, with 289,328 units traded at a value of ₦25.07 million.

THE ISSUES

The market’s latest gain is encouraging for investors, but the concentration of trading value in Dangote Cement raises questions about how widely the recovery is spreading.

When a heavily weighted stock rises sharply, it can lift the overall index even when more stocks are falling than rising. Monday’s 24 gainers and 30 decliners show that the benchmark’s positive performance did not translate into gains for most of the stocks that traded.

The difference between trading volume and value also matters. Fewer shares changed hands, but the total value increased because investors traded heavily in a high-value stock. Excluding Dangote Cement, the value traded was lower than Friday’s level, suggesting that the wider market’s buying activity remained less robust than the headline figure indicated.

For investors, the key question is whether other stocks will begin to participate in the rally. A recovery supported by more companies would provide stronger evidence of broad market confidence than one driven mainly by a handful of heavyweight shares.

WHAT’S NEXT

Investors will be watching whether buying interest in industrial and banking stocks continues and spreads to more listed companies. Further third-quarter results could also influence decisions as investors assess company earnings and financial positions.

The relationship between crude oil prices and the performance of oil and gas stocks will remain relevant, particularly as global oil prices respond to developments in the Middle East.

Developments in the naira’s exchange rate and the gap between the official market and bureau de change rates will also be worth monitoring.

BOTTOM LINE

The NGX extended its recovery, adding ₦2.64 trillion in market value, but the rally remains uneven. Dangote Cement played a major role in the advance, while more stocks declined than gained. Whether the market can sustain its momentum will depend partly on whether buying interest broadens beyond its biggest contributors.

Source: Proshare market report