The Nigerian stock market continued its bullish momentum on December 24, 2024, with the Nigerian Exchange All-Share Index (NGX ASI) closing at 102,186 points. This marks a 0.82% gain from the previous session, up by 829.9 points. Investors remain optimistic as the NGX inches closer to its all-time high of 106,087.8 points, recorded in February 2024. The positive performance from yesterday extends, reinforcing the strong market sentiment as the year-end approaches.
Market Highlights: Key Drivers of the Bullish Trend
Several factors have fueled this rally:
- Improved Investor Confidence: With inflation showing signs of stabilization at 34.6%and a consistent economic recovery trajectory, investors are regaining confidence in equity markets.
- Sectoral Resilience: Non-energy minerals, consumer services, and financials stood out as the top-performing sectors, driving significant upward momentum.
- Year-End Portfolio Adjustments: Institutional investors are rebalancing portfolios, favoring undervalued and growth stocks, thereby increasing liquidity in the market.
Top Gainers of the Day
- MRS Oil PLC: Closing at ₦217.8 with a 10% increase, MRS demonstrated strong market sentiment within the distribution services sector.
- Ikeja Hotel PLC: Posting a 9.95% gain, the stock closed at ₦11.05, reflecting investor confidence in the consumer services sector.
- Multiverse Mining: The non-energy minerals player surged 9.9% to ₦5.55, showcasing resilience and growth in mining activities.
- Skyway Aviation Handling: Rising 9.84% to ₦30.7, this stock benefited from robust performance in the transportation sector.
- John Holt PLC: With a 9.69% gain, the consumer services company closed at ₦6.45, marking its spot among the day’s top gainers.
Top Decliners of the Day
The market saw some setbacks, as certain stocks faced downward pressure:
- Thomas Wyatt PLC: The distribution services company dropped by 10% to ₦1.71.
- Caverton Offshore Support: Falling 7.35%, the transportation services provider closed at ₦2.27.
- Wapic Insurance: The financial services stock declined 5.03% to ₦1.7.
- HMCALL: This finance sector stock shed 5% to close at ₦4.75.
- Livestock Feeds PLC: The processing industries company decreased by 5%, ending the day at ₦3.8.
Sector Performance
Top Performing Sectors:
- Communications
- Non-Energy Minerals
- Consumer Services
- Energy Minerals
- Finance
Underperforming Sectors:
- Utilities
- Producer Manufacturing
- Health Technology
- Retail Trade
- Electronic Technology
Analysis: The Path to the All-Time High
As the NGX ASI inches closer to the historic 106,087.8-point benchmark, analysts predict a positive close to the year. The robust activity across key sectors, supported by year-end trading volumes, indicates a continued bullish outlook. However, challenges such as high interest rates (27.5%)and inflationary pressures could test market resilience in the upcoming quarters.
Market Sentiment and Outlook
With two consecutive green days, the NGX ASI’s upward trajectory mirrors the optimism in the broader Nigerian economy. If this pace sustains, the market could challenge its previous highs early in 2025. For investors, this offers a window to capitalize on growth-oriented stocks, especially in sectors poised for expansion.
