Gains in the Consumer Goods Sector largely supported by the upticks in NASCON and DANGSUGAR.

The recent gains registered in the consumer goods sector on the listed equity market have been largely supported by the upticks in NASCON and DANGSUGAR. The NGX Consumer Goods index has appreciated by about +81% YTD, NASCON has returned +355% YTD, and DANSUGAR has returned +243% YTD as of August 31, 2023. Analysts attribute the rise in the stock prices of DANSUGAR and NASCON to investors strategically positioning themselves ahead of the proposed merger involving both companies. The merger, which will incorporate both companies and Dangote Rice Limited into Dangote Food, is considered a move that could strengthen the Group’s position in the market. Moreover, investors might have factored in the possibility that this consolidation would establish a solid base for capitalising on future opportunities within the food industry.