Nigerian Stock Market Wraps Up December 2024 with Bullish Momentum, Gains 0.99%

The Nigerian stock market ended the trading week of December 27, 2024, on a positive note, reflecting strong investor optimism as the year draws to a close. The All-Share Index (ASI) climbed by 1,004.21 points to close at 102,133.30, marking a 0.99% week-on-week gain. This performance pushed the index past the critical 102,000-point mark, up from the previous week’s close of 101,129.09 points.

Despite the overall bullish sentiment, trading volume declined sharply by 46.7%, with 1.3 billion shares exchanged compared to the 2.5 billion shares recorded the prior week.

Market Performance

The week’s trading was characterized by a strong start, with gains sustained up to Christmas Eve, December 24. Following a two-day market holiday, the index dipped slightly, shedding 52 points on December 27 but still maintained its overall upward trajectory.

Market capitalization briefly surpassed the N62 trillion mark before settling at N61.9 trillion by week’s end.

Sectoral Performance

The NGX Insurance Index led sectoral gains with an impressive 7.87% surge, driven by over 20% increases in Universal Insurance Plc, Prestige Assurance Plc, and Sunu Assurances Nigeria Plc. Other sectoral highlights include:

• NGX Consumer Index: Up 3.13%, supported by a remarkable 26% rise in PZ Cussons Nigeria Plc.
• NGX Banking Index: Rose by 1.97%, reflecting positive performances from banking heavyweights.
• NGX Industrial Goods Index: Posted a modest gain of 0.09%.
• NGX Oil and Gas Index: Declined by 0.12%, bucking the broader market trend.

Top Gainers

Leading the week’s gainers, Ikeja Hotel Plc surged by 32.79%, followed closely by Multiverse Mining and Exploration Plc, which gained 32.61%. Other notable performers included:

• PZ Cussons Nigeria Plc: +26.09% to close at N29.00
• Universal Insurance Plc: +25.00% to N0.55
• Royal Exchange Plc: +24.66% to N0.91
• MRS Oil Nigeria Plc: +21.00% to N217.80

Top Losers

On the losing side, Thomas Wyatt Nig. Plc led the decliners with a 10.00% drop. Other significant laggards included:

• Aradel Holdings Plc: -9.64%
• Austin Laz & Company Plc: -9.29%
• Daar Communications Plc: -6.45% to N0.58

Corporate Developments

A series of corporate announcements highlighted the week, including:

• Transnational Corporation Plc proposing a mandatory tender offer.
• Julius Berger Nigeria Plc unveiling plans to expand into Benin Republic.
• MTN Nigeria Communications Plc announcing plans to issue up to N50 billion in commercial paper notes.
• Tantalizers Plc venturing into the blue economy with an MoU to acquire a fish trawling company.

Market Outlook

The bullish momentum in the All-Share Index suggests the potential for further gains as it aims for the 104,000-point milestone. Sustained daily increases in mid- and large-cap stocks could continue to drive the upward trend, signaling strong investor confidence as the market enters the final trading days of 2024.

This week’s performance underscores the resilience of the Nigerian stock market, bolstered by robust sectoral gains and strategic corporate initiatives.