2024 Closes with a Slight Dip on the Nigerian Exchange Limited
The Nigerian Exchange Limited (NGX) concluded its trading year on a slightly subdued note, with the All-Share Index (ASI) experiencing a marginal decline of 0.22%, settling at 102,926.40 points compared to the previous day’s closing figure of 103,149.35 points. This dip translated into a N135 billion reduction in total market capitalization, which landed at N62.76 trillion by the end of the trading session. Despite this final day downturn, the overall performance for the year remained positive, with a year-to-date gain of 37.01%. December itself contributed a respectable 5.47% gain, while the week ending on Tuesday showed a positive uptick of 0.77%. These figures indicate a generally buoyant market sentiment throughout the year, even with the year-end softening.
Market activity on the last trading day remained robust, with a substantial volume of 422.65 million shares exchanged across 8,427 deals, amounting to a total value of N39.99 billion. This suggests continued investor engagement despite the slight decline in the ASI. The market breadth, a measure of overall market sentiment, closed positive, with 36 equities advancing in price against 28 that declined. This mixed performance hints at a degree of uncertainty among investors possibly due to end-of-year portfolio adjustments or broader economic considerations. The concluding day’s trading, while recording a slight downturn, does not detract from the overall positive performance observed throughout 2024.
Examining the top performers of the day reveals a mix of sectors. Prestige Assurance Plc, Beta Glass Plc, and Universal Insurance Plc each registered a 10.00% surge in their respective share prices, closing at N1.21, N64.90, and N0.66 respectively. Okomu Oil Plc, a major player in the agricultural sector, also saw a significant increase of 9.98%, reaching N444.00 per share. Thomas Wyatt Plc, another noteworthy gainer, concluded the day with a 9.88% rise, with its share price climbing to N1.89. These gains suggest investor confidence in these particular companies, potentially driven by sector-specific positive news or overall strong performance throughout the year.
Conversely, several companies experienced declines in their share prices. Union Dicon Salt Plc, Eterna Plc, and Champion Breweries Plc each faced a 10.00% drop in their stock value, closing at N7.20, N24.30, and N3.81 respectively. PZ Cussons Nigeria Plc and Cadbury Nigeria Plc also experienced significant losses, with declines of 6.90% and 6.52% respectively. These losses could be attributed to a variety of factors, including profit-taking by investors, sector-specific challenges, or broader economic concerns impacting investor sentiment. The mixed performance across different companies highlights the dynamic nature of the stock market and the varied influences acting upon individual stocks.
Trading volume and value offer further insight into market dynamics. Access Corporation dominated the trading volume chart, with 30.22 million shares exchanged, representing a total value of N722.93 million across 401 deals. Meanwhile, Aradel Holdings Plc led in terms of value traded, with 21.62 million shares exchanged amounting to a substantial N12.91 billion in 278 deals. Other significant contributors to value traded included Geregu Power Plc, with N10.36 billion generated from the exchange of 10.01 million shares, and Seplat Energy Plc, with N9.54 billion from 1.86 million shares traded. These figures indicate strong investor interest in these particular companies, possibly fueled by their performance outlook or perceived value in the current market conditions.
In conclusion, the Nigerian stock market wrapped up 2024 with a day of mixed fortunes. While the ASI experienced a slight decline, the overall performance for the year remained positive, showcasing resilience and growth. The market witnessed robust trading activity, indicating continued investor engagement. The mixed performance of individual stocks, with some registering substantial gains while others experienced significant losses, underscores the complex interplay of factors influencing market sentiment. The closing trading day of 2024 reflected a cautious approach from investors, possibly influenced by end-of-year adjustments and broader economic uncertainties. However, the overall positive year-to-date performance suggests a generally optimistic outlook for the Nigerian stock market, setting the stage for potential continued growth in the coming year.
