The Nigerian stock market closed the trading week ending December 27, 2024, on a bullish note, as the All-Share Index (ASI) surged by 1,004.21 points to reach 102,133.30.
This marks a 0.99% week-on-week increase, pushing the index past the significant 102,000-point threshold, up from its previous close of 101,129.09 points.
Despite the market’s positive momentum, trading volume dropped sharply by 46.7%, falling to 1.3 billion shares from 2.5 billion the previous week.
Market breadth remained strong, with 64 stocks recording price gains, an improvement from the 61 gainers in the prior week.
Conversely, only 20 stocks declined, fewer than the 26 laggards observed previously.
This performance reflects investor optimism as the year-end approaches, underscoring resilience in key market sectors.
Market performance
The Nigerian stock market exhibited a largely bullish trend throughout the week, with market capitalization briefly surpassing the N62 trillion mark before settling at N61.9 trillion on Friday.
The All-Share Index (ASI) began the week on a strong note, sustaining gains up to Christmas Eve, December 24. However, after the market holiday on December 25 and 26, the index shed 52 points, closing slightly in the red.
Key highlights of the week include
- The NGX Premium Index advanced by 2.29%, driven by positive performances from stocks like FBN Holdings (FBNH), United Bank for Africa (UBA), and Zenith Bank (ZENITHBANK). The NGX 30 Index also posted a 1.36% increase.
- NGX Main Board Index closed the week at 0.33%, maintaining its positive momentum.
Sectorial Indexes
- NGX Insurance Index led sectoral gains, soaring by 7.87%, fueled by over 20% increases in UNIVERSAL INSURANCE PLC, PRESTIGE ASSURANCE PLC, and SUNU ASSURANCES NIGERIA PLC.
- The NGX Consumer Index climbed by 3.13%, supported by an impressive 26% surge in PZ CUSSONS NIGERIA PLC.
- The NGX Banking Index registered a modest rise of 1.97%, while the NGX Industrial Goods Index increased by 0.09%.
- Conversely, the NGX Oil and Gas Index bucked the bullish trend, declining by 0.12%.
Top gainers
Leading the pack of gainers, IKEJA HOTEL PLC surged by 32.79%, followed by MULTIVERSE MINING AND EXPLORATION PLC, which rose by 32.61%. Other notable gainers included:
- PZ CUSSONS NIGERIA PLC: up 26.09% to N29.00
- UNIVERSAL INSURANCE PLC: up 25.00% to N0.55
- ROYAL EXCHANGE PLC: up 24.66% to N0.91
- PRESTIGE ASSURANCE PLC: up 23.46% to N1.00
- MRS OIL NIGERIA PLC: up 21.00% to N217.80
- SKYWAY AVIATION HANDLING COMPANY PLC: up 20.75% to N33.75
- JOHN HOLT PLC: up 20.58% to N7.09
- SUNU ASSURANCES NIGERIA PLC: up 20.03% to N8.99
Top losers
On the losing side, THOMAS WYATT NIG. PLC led the decline, falling by 10.00%, followed by ARADEL HOLDINGS PLC and AUSTIN LAZ & COMPANY PLC, which fell by 9.64% and 9.29%. Other significant decliners included:
- DAAR COMMUNICATIONS PLC: down 6.45% to N0.58
- NEIMETH INTERNATIONAL PHARMACEUTICALS PLC: down 5.00% to N1.90
- LIVESTOCK FEEDS PLC: down 4.88% to N3.90
- HALDANE MCCALL PLC: down 4.40% to N4.78
- NASCON ALLIED INDUSTRIES PLC: down 4.32% to N31.00
- ETERNA PLC: down 3.23% to N28.50
- OANDO PLC: down 3.09% to N67.35
Corporate announcements
This week, several corporate developments captured investor attention:
- Transnational Corporation Plc announced a proposed mandatory tender offer, signaling strategic moves to consolidate its holdings.
- Julius Berger Nigeria Plc revealed plans to expand regionally with the establishment of Julius Berger operations in Benin Republic.
- MTN Nigeria Communications Plc unveiled its intent to issue up to N50 billion in Series 15 and 16 Commercial Paper Notes.
- Vitafoam Nigeria Plc released its audited financial statement for the fiscal year ending September 30, 2024, showcasing its latest performance metrics.
- MTN Nigeria Communications Plc also disclosed the renewal of its spectrum lease agreement with Ntel.
- Access Holdings Plc made headlines with its Rights Issue allotment announcement, providing updates on its equity expansion efforts.
- Tantalizers Plc ventured into the blue economy, signing a Memorandum of Understanding (MoU) to acquire a fish trawling company, marking its diversification into a new sector.
These announcements underscore key strategic initiatives across various sectors, showcasing the dynamism of the Nigerian corporate landscape.
Outlook
- The All-Share Index continues to ride a wave of bullish momentum, surpassing the 102,000 milestone and setting its sights on the 104,000 level.
- If the recent rally above 102,000 is not viewed by investors as overbought, the index has the potential to advance further, testing the 103,000 and eventually the 104,000 thresholds.
- This upward trajectory is expected to be fueled by consistent daily gains in mid- and large-cap stocks, reflecting sustained investor optimism.
