Dangote Cement Plc saw its market capitalization slip below N9 trillion on Tuesday, August 19, 2025, as a wave of sell-offs dragged its share price down nearly 10%.
Trading data from the Nigerian Exchange (NGX) revealed that the cement giant’s share price tumbled to N520 at market close on Tuesday, from N577, despite the company’s impressive half-year earnings.
Dangote Cement’s shares rose surge in trading activity, with volume soaring nearly 400% to 2.598 million units, valued at N1.350 billion, compared to just 459,204 units in the previous session.
This steep decline reduced Dangote Cement’s market value to N8.774 trillion, underscoring how investor sentiment can shift suddenly, even against strong fundamentals.
Profit-Taking Drives Investor Sentiment
Analysts point to profit-taking as the major driver behind Tuesday’s sell-off, with many investors capitalizing on Dangote Cement’s recent rally to a new 52-week high.
Data from the NGX show that the stock held steady at N577 for six consecutive trading days before the sudden drop, suggesting the sell-off was reactionary rather than fundamentally driven.
This heavy profit-taking comes at a time when the company’s earnings narrative remains strong, highlighting the disconnect between market sentiment and financial performance.
Strong Earnings Signal Resilience
Despite the sell pressure, Dangote Cement’s half-year 2025 results point to a record-breaking year ahead.
The company posted a pre-tax profit of N730 billion, up 149% year-on-year, nearly matching its entire FY 2024 pre-tax profit within just six months.
Profit after tax surged to N520.455 billion, a 174% YoY increase, already surpassing 2024’s full-year earnings by 3%. While 2024 delivered a stellar 49.67% year-to-date return, 2025’s performance has moderated to 8.60% as of August 20, though fundamentals suggest potential upside.
Broader Market Impact
The sharp correction also contributed to broader market weakness, amplifying declines across key indices.
The Nigerian stock market mirrored Dangote’s slump, with the All-Share Index (ASI) falling 1.46% to 142,613.47, wiping out N1.33 trillion in market value in a single session.
The Industrial Goods Index, where Dangote Cement is a heavyweight, plunged 4.37%, signaling sector-wide pressure from the sell-off.
This market-wide downturn underscores the influence of heavyweight stocks like Dangote Cement, whose performance often sets the tone for broader investor sentiment.
The ripple effect highlights the challenges facing the Nigerian equity market, where short-term speculation can override solid fundamentals.
