The Nigerian stock market, tracked by the All-Share Index, concluded a stellar year in 2024 with a remarkable gain of 37.65%, fueled by resilient bullish momentum.
This impressive performance continues a strong recovery that began in 2020, following two challenging years where the index faced declines of 17.81% in 2018 and 14.60% in 2019.
In a striking comeback, the index recovered in 2020 with a robust 50.03% increase, outpacing major global benchmarks like the S&P 500 and FTSE 100, which finished at 16.3% and 14.3%, respectively, during the pandemic.
Since then, the All-Share Index has consistently closed above its yearly opening price from 2020, overcoming various macroeconomic challenges.
By December 31, 2024, the Nigerian stock market—reflected in the All-Share Index—achieved a market capitalization of N62.76 trillion, a staggering increase of approximately N21.8 trillion from N40.91 trillion at the close of 2023.
Noteworthy sectors such as Oil & Gas and Insurance led the charge, with year-to-date gains of 159% and 123%, respectively, as both large-cap and mid-cap stocks collectively fueled the index’s ascent to new heights.
Market trends before 2024
The All-Share Index began January 2020 at 28,843 points, but it faced significant challenges in the first quarter as the pandemic infiltrated the global economy. A steep year-to-date decline took hold in February and continued until September 2020.
- However, starting in October, a bullish momentum began to take shape, and by December, the index closed the year with an impressive gain of 50.03%, finishing at 40,270 points—outperforming both the S&P 500 and FTSE 100.
- In 2021, the index experienced a familiar pattern, grappling with gains from February through September. Yet again, the tide turned in October, culminating in a year-end performance of 6.07% by December.
The trend continued into 2022, where the index posted steady cumulative gains throughout the year, ultimately achieving a performance of 19.98%. By December 31, 2023, the All-Share Index had risen to a remarkable 74,773 points, solidifying its upward trajectory.
Trend in 2024
The Nigerian stock market, tracked by the All-Share Index, delivered a year-to-date performance of 37.65% in 2024, sustaining the bullish momentum carried over from 2023.
- January ignited the market with a stunning 35% leap, fueled by 19 billion shares exchanging hands. Soaring from 74,773 to 101,154 points, the index not only delivered its best monthly performance of the year but also shone globally, trailing only Argentina’s Merval as the world’s second-best-performing index.
- February brought a slight pullback, with the index dipping to 99,980 points. However, March reversed this decline, pushing the index above 104,000 points.
- April saw pressure from recapitalization efforts in the financial services sector, which affected investment sentiment. This led to a decline, with the index dropping to 104,562 points, representing a 6% decrease.
- From April to August, the All-Share experienced a retracement, closing at 96,580 points by August.
- A turnaround began in September, as the index found support and steadily recovered, reaching the 100,000-barrier by the third week of December.
As of December 31, the All-Share Index stands strong, closing above 102,000 points, signaling resilience and renewed buying interest as the year ends.
The charm of the fourth quarter
Since 2020, the All-Share Index has consistently excelled in the fourth quarter, from October to December.
- In both 2020 and 2021, despite facing cumulative challenges from February to September, the index rebounded with bullish price action as the year wrapped up.
- While the index maintained positive performance throughout 2022, 2023, and 2024 from Q1 to Q3, the fourth quarter served to intensify this momentum.
- In 2024, notable positive price action emerged in the last quarter, likely spurred by favorable earnings reports from large-cap and mid-cap stocks for the period ending in September.
Looking forward, the launch of NGX Invest—a cutting-edge digital platform aimed at streamlining Public Offerings and Rights Issues in the Nigerian capital market—on July 11, 2024, is expected to boost retail participation in the coming year.
At the 2024 Investor Summit & Awards Dinner on December 18, 2024, Mr. Jude Chiemeka, CEO of the Nigerian Exchange Limited (NGX), revealed plans for innovative solutions, including a blockchain-like interface designed to simplify and enhance the investment experience.
