The Nigerian Exchange All-Share Index (NGX ASI) continued its impressive rally, closing higher by 544.4 points, or 0.55%, to settle at 99,922.6 points on December 16, 2024. This marks the index’s fifth consecutive day of gains, an achievement not seen since October 25, 2024. Investors are watching closely as the NGX ASI inches closer to its all-time high of 106,087.8 points, last recorded in February 2024.
Market Momentum: What’s Driving the Rally?
The market’s bullish sentiment is being fueled by several key factors:
- Robust Corporate Earnings: Many listed companies have delivered better-than-expected earnings in recent quarters, buoying investor confidence.
- Sectoral Growth: Specific sectors, including finance and consumer non-durables, have shown remarkable resilience, contributing significantly to market gains.
- Macroeconomic Stability: Nigeria’s GDP growth and moderated inflation rates have provided a stable backdrop for investment activities.
Top Performers
The day’s trading session highlighted the continued dominance of certain stocks. Below are the top five performers:
| Symbol | Company Name | Sector | Closing Price (₦) | Change (%) |
|---|---|---|---|---|
| LIVINGTRUST | LivingTrust Mortgage Bank Plc | Finance | 3.3 | 10.0 |
| ROYALEX | Royal Exchange Plc | Finance | 0.66 | 10.0 |
| INTBREW | International Breweries Plc | Consumer Non-Durables | 4.55 | 9.9 |
| GUINEAINS | Guinea Insurance Plc | Finance | 0.67 | 9.84 |
| CAVERTON | Caverton Offshore Support Group Plc | Transportation | 2.17 | 9.6 |
The finance sector has particularly stood out, supported by companies like LivingTrust Mortgage Bank and Royal Exchange achieving the daily upper limit of 10%.
Lagging Stocks
Not all stocks shared in the positive momentum. Here are the worst-performing stocks for the day:
| Symbol | Company Name | Sector | Closing Price (₦) | Change (%) |
|---|---|---|---|---|
| UPL | University Press Plc | Consumer Services | 3.77 | -9.81 |
| HMCALL | HMCALL | Finance | 4.7 | -9.62 |
| INTENEGINS | International Energy Insurance Co. | Finance | 1.33 | -9.52 |
| ABCTRANS | Associated Bus Company Plc | Transportation | 1.05 | -8.7 |
| SOVRENINS | Sovereign Trust Insurance Plc | Finance | 0.78 | -8.24 |
The laggards reflect challenges within the consumer services and finance sectors, as some companies face operational and revenue pressures.
Sectoral Overview
Best Performing Sectors
- Energy Minerals: Boosted by increasing global energy prices and favorable local policies.
- Electronic Technology: Innovation and foreign partnerships have spurred growth.
- Consumer Durables and Process Industries: Strong demand and enhanced production efficiencies have lifted these sectors.
Worst Performing Sectors
- Technology Services: Slow adoption and cost pressures weigh on profitability.
- Health Technology: Regulatory hurdles and limited funding options present challenges.
- Transportation: Cost pressures and declining revenue streams affect performance.
Economic Indicators Support Market Sentiment
The Central Bank of Nigeria’s decision to maintain a steady interest rate of 27.5% in November 2024 has reassured investors of a stable monetary policy environment. Additionally, inflation edged slightly higher to 34.6% in November, up from 33.88% in October.
Looking Ahead
The NGX ASI’s sustained rally sets an optimistic tone for the remainder of December 2024. Analysts expect that with continued investor confidence, strong sectoral performances, and stable macroeconomic indicators, the index could breach its all-time high early next year. However, external factors, including global oil prices and geopolitical events, remain potential risks to the rally.
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