The Nigerian stock market witnessed a notable shift last week, with Union Dicon Salt PLC (UNIONDICON) spearheading a recovery among food and agricultural stocks. After months of underperformance, the company staged a remarkable comeback that signals renewed investor confidence in the consumer goods segment.
Union Dicon, a major processor of edible salt and related chemical additives like potassium iodate and ferrocyanides, recorded its highest stock price in over three months. Its stock closed the week at ₦7.60, a striking 31.03% increase from ₦5.80 the previous week.
This marks a significant reversal for the company, which had struggled throughout late 2024 and into the first quarter of 2025. Union Dicon was the only food-related consumer goods company to post negative performance during that period. Now, it’s leading the sector in early Q2 gains.
Subsector-wide stock performance is mixed
Other key players in the food and agro-processing sector had a mixed week:
-
Dangote Sugar Refinery (DANSUGAR) rebounded with a 5.31% gain, recovering from the dip it suffered the previous week.
-
Honeywell Allied Industries (HONYFLOUR) continued its downward trend, losing another 1.94% after an 8.34% drop in the first trading week of April.
-
Nascon Allied Industries (NASCON) gained 4.64%, though it remains below its value at the start of Q2.
-
BUA Foods, Northern Nigeria Flour Mills, Cadbury Nigeria, and Nestle Nigeria saw no movement in their stock values.
Agricultural producers see modest gains
Among agricultural producers, the performance was generally positive:
-
FTN Cocoa Processors led the group with an 18.75% rise.
-
Livestock Feeds followed with a 7.83% increase.
-
Ellah Lakes also recorded a gain of 3.97%.
-
Palm oil producers Okomu Oil Palm and Presco remained unchanged for the week.
Market outlook: confidence returns, but risks remain
Union Dicon’s double-digit rise two weeks in a row places it as the standout performer at the start of Q2 2025, hinting at a possible resurgence in the consumer goods market. Its sharp rally reflects investor optimism, possibly tied to improved fundamentals or better market sentiment.
However, the continued decline of Honeywell Allied Industries and the stagnant prices of several other major players indicate that the market is still fragmented, with gains not yet evenly spread.
As we move deeper into Q2, sustained performance from Union Dicon and a possible rally from other lagging firms could restore broader confidence. For now, the sector shows signs of life, but caution remains the watchword for investors.
