Lagos, December 30, 2024 — The Nigerian Exchange (NGX) All-Share Index (ASI) closed the trading day with a spectacular gain of 1,016.1 points, a 0.99% increase that propelled the index to 103,149.4. This rally marks the first time in nearly three months that the index has moved by over 1,000 points in a single session—reversing the memory of October 3, 2024, when it suffered a decline of 1,168 points.
Today’s performance brings the ASI tantalizingly close to its all-time high of 106,149.4 points, set in February 2024. Investors are optimistic that this momentum signals a return to a robust market phase following weeks of moderate trading activity.
Top Gainers
Leading the charge were MECURE Industries PLC, Neimeth International Pharmaceuticals PLC, and Prestige Assurance Co PLC, each recording a 10% gain. Their stellar performances highlight the growing investor interest in health technology and finance stocks, which have shown resilience amid challenging economic conditions.
Top Losers
On the flip side, consumer non-durables and energy minerals saw notable declines. PZ Cussons Nigeria PLC topped the losers’ chart with a 10% drop, followed by Vitafoam PLC and NGX Group, which fell by 9.62% and 9.17%, respectively. These losses underscore the mixed sentiments still present in some corners of the market.
Broader Economic Context
Nigeria’s inflation rate of 34.6% in November 2024 and the Central Bank of Nigeria’s recent interest rate hike to 27.5% have continued to shape market behaviors. Despite these challenges, today’s rally suggests investor optimism may be buoyed by projections of economic stabilization in 2025, underpinned by strategic reforms and international partnerships.
Technical Analysis: ASI Momentum
The NGX ASI’s breach of the 103,000-point mark is not merely a psychological win but also a significant technical milestone. Analysts note that the index is now within striking distance of its all-time high. Should the momentum persist, the ASI could establish a new record in the coming weeks, provided macroeconomic conditions and corporate earnings reports align with investor expectations.
What’s Driving the Recovery?
Several factors have contributed to today’s bullish sentiment:
- Improved Corporate Earnings: The latest quarterly earnings reports from leading companies like Access Holdings and Abbey Mortgage Bank indicate resilience, with both firms posting significant growth in profitability.
- Policy Optimism: Government initiatives aimed at diversifying the economy and boosting non-oil revenues appear to be restoring confidence in the Nigerian capital markets.
- Investor Sentiment: Local and foreign investors are increasingly seeing value opportunities in Nigerian equities, spurred by attractive valuations in the wake of recent market corrections.
Looking Ahead: Challenges and Opportunities
While the NGX ASI’s performance today is commendable, challenges persist. Inflationary pressures and high borrowing costs remain significant headwinds for many businesses. However, sectors like technology services and health technology are poised to benefit from ongoing digital transformation and healthcare investments.
Investors should also monitor upcoming economic data releases and corporate forecasts, which could influence market directions in early 2025.
Conclusion
The NGX ASI’s dramatic gain today signals a potential turning point for the Nigerian stock market. As the year ends, market participants have reason to hope that 2025 will usher in sustained growth and resilience, making the NGX a key market to watch.
