The Nigerian Exchange Limited (NGX) concluded its first trading day of the week on a positive note, registering substantial growth across various metrics. The market capitalization reached N62.5 trillion, a significant figure reflecting the overall value of listed companies. Trading activity was robust, with 641,117,293 shares exchanged in 13,778 deals, generating a turnover of N15.50 billion. This represents a notable surge in trading volume, increasing by 44% compared to the previous trading day. Turnover also experienced a healthy uptick of 3%, while the number of deals rose by 10%. These figures indicate heightened investor interest and participation in the Nigerian equity market. The positive momentum suggests a growing confidence in the market’s potential, which could be attributed to various factors including macroeconomic conditions, company performance, and investor sentiment.
The NGX All-Share Index, a key indicator of market performance, climbed by 0.99% to close at 103,149.35 points. This upward movement reflects the overall positive performance of listed companies. The index’s gains extended beyond the immediate trading day, showing a 1.88% increase over the past week, a 5.49% rise over the past four weeks, and a substantial year-to-date growth of 37.95%. This consistent positive trajectory suggests a sustained upward trend in the market, potentially driven by factors such as improved economic outlook, positive corporate earnings reports, and increased foreign investment. The impressive year-to-date growth further underscores the market’s resilience and ability to generate returns for investors.
Of the 127 listed equities traded during the session, 39 stocks advanced in value while 21 declined. This indicates a predominantly positive market sentiment, with more companies experiencing gains than losses. Among the top gainers, MeCure Industries, Neimeth International Pharmaceuticals, and Prestige Assurance Company all recorded a 10% increase in their share prices, reaching N12.65, N2.09, and N1.10 per share, respectively. Other notable gainers included Lasaco Assurance (9.96% increase), Livingtrust Mortgage Bank (9.92% increase), and Meyer Plc (9.91% increase). These substantial gains suggest strong investor confidence in these companies and their future prospects.
Conversely, PZ Cussons Nigeria experienced the most significant decline, with its share price dropping by 10% to close at N26.10. Vitafoam Nigeria followed with a 9.62% decrease, closing at N21.60, while NGX Group saw a 9.17% drop to N27.25. Other notable losers included Ikeja Hotel (-7.41%), Eterna Plc (-5.26%), and Japaul Gold (-4.11%). These declines could be attributed to company-specific factors, industry trends, or broader market forces. Analyzing the reasons behind these price movements can provide valuable insights into the dynamics of the Nigerian equity market.
Trading volume was dominated by Universal Insurance Company, with 71.5 million shares traded. Guaranty Trust Holding and Access Holdings followed closely with 54.7 million and 46.6 million shares traded, respectively. C&I Leasing also registered a significant trading volume of 32.3 million shares. These high trading volumes suggest strong investor interest in these prominent companies, likely driven by their market position, financial performance, and perceived growth potential.
Sectoral performance mirrored the overall positive market trend. The Top 30 Index, representing the performance of the top 30 listed companies, gained 1.15% and recorded a 36.93% increase year-to-date. The Insurance Index also experienced significant growth, rising by 2.45%. The Consumer Goods Index, reflecting the performance of companies in the consumer goods sector, gained 1.76% and boasted a substantial year-to-date increase of 54.88%. These sectoral gains indicate broad-based growth across different segments of the Nigerian economy, which further contributes to the positive market sentiment. The robust performance of the Consumer Goods Index, in particular, suggests strong consumer spending and confidence in the economy.
Finally, it’s important to note the market’s performance within the context of the shortened trading week. The PUNCH reported that the Nigerian equity market gained N472 billion during this period, which was impacted by the Federal Government’s declaration of public holidays for Christmas celebrations on Wednesday, December 25th, and Thursday, December 26th, 2024. This gain, despite the reduced trading days, further underscores the positive momentum in the market. The ability of the market to generate substantial gains even during a shortened week suggests underlying strength and continued investor optimism. This performance bodes well for the Nigerian equity market’s continued growth and its potential to attract further investment.
