The Nigerian Exchange (NGX) resumed trading today, December 27, 2024, following a two-day holiday closure in observance of the Christmas celebrations. Despite optimism in global markets, the NGX All-Share Index (ASI) slightly retreated, shedding 52.7 points or 0.05%, to close at 102,133.3. This decline places the index approximately 3.7% below its all-time high of 106,087.8 recorded in February 2024.
Market Overview
The market’s modest decline today reflects cautious investor sentiment as trading resumed after the extended break. The day’s performance was characterized by a mix of profit-taking and selective buying, particularly within high-growth sectors.
Top Performers
The top five gainers of the day highlighted a strong appetite for certain consumer services, health technology, and finance stocks:
- Universal Insurance Co. Plc (UNIVINSURE) – Gained 10%, closing at ₦0.55.
- University Press Plc (UPL) – Also up 10%, trading at ₦3.85.
- Wapic Insurance Plc (WAPIC) – Increased by 10%, reaching ₦1.87.
- Ikeja Hotel Plc (IKEJAHOTEL) – Rose by 9.95%, to close at ₦12.15.
- May & Baker Nigeria Plc (MAYBAKER) – Ended the day with a 9.94% uptick at ₦9.40.
Worst Performers
Meanwhile, the laggards were led by Honeywell Flour Mills Plc (HONYFLOUR), which dropped 9.09% to ₦6.30. Other notable decliners included:
- RT Briscoe Plc (RTBRISCOE): -5.66% to ₦2.50.
- Neimeth Int’l Pharmaceuticals Plc (NEIMETH): -5.47% to ₦1.90.
- Eterna Plc (ETERNA): -5.00% to ₦28.50.
- Tantalizers Plc (TANTALIZER): -4.44% to ₦1.72.
Sectoral Insights
Best Sectors
- Consumer Services: Consistent buying interest boosted stocks like University Press Plc and Ikeja Hotel Plc.
- Health Technology: Companies such as May & Baker benefitted from renewed investor interest in the healthcare sector.
Worst Sectors
- Retail Trade: Faced profit-taking as RT Briscoe dragged sectoral performance.
- Process Industries: HONYFLOUR’s sharp decline set a negative tone for the sector.
Macroeconomic Factors at Play
Nigerian inflation, measured at 34.6% as of November 2024, and an interest rate hike to 27.5% in November continue to challenge corporate earnings. These conditions have dampened investor confidence, despite robust GDP growth of 3.2% in Q3 2024.
Global Market Influence
Globally, equity markets exhibited mixed trends amid low trading volumes in the holiday season. Key indices like the Dow Jones Industrial Average and S&P 500 futures showed slight downward movements during the day. Commodities such as gold and crude oil managed modest gains, reflecting cautious optimism.
Looking Ahead
Investors are keenly watching macroeconomic developments, including upcoming corporate earnings and government fiscal policies. Given the NGX ASI’s current level, market participants are hopeful for a potential recovery in early 2025, provided domestic and global headwinds subside.
