The Nigerian Exchange All-Share Index (NGX ASI) capped a remarkable week by climbing 1.76% to settle at 101,129.1, gaining 1,750.8 points overall. However, the week concluded on a somber note as the index broke its longest winning streak since March 2024, dipping by 118.9 points (-0.12%) on the final trading day. This brief stumble highlights the market’s complex dynamics as it inches toward its February 2024 record high of 106,087.8.
A Strong Week with Mixed Emotions
The NGX ASI’s performance this week reflects investor confidence in the Nigerian economy, buoyed by encouraging GDP growth and moderating inflation trends. Despite Friday’s setback, the 8-day rally marked a historic streak fueled by robust activity in the industrial and consumer goods sectors.
Key contributors to the week’s upward trajectory included improved earnings reports and increased foreign portfolio inflows. However, a correction on Friday signaled profit-taking and a recalibration of market expectations.
Sectoral Highlights: Winners and Losers
Top Performing Sectors
- Electronic Technology: Buoyed by rising global demand for tech services.
- Consumer Non-Durables: Companies like Honeywell Flour Mills PLC (HONYFLOUR) led with a 10% single-day surge.
- Transportation: Sustained growth from players such as Associated Bus Company PLC (ABCTRANS).
Underperforming Sectors
- Non-Energy Minerals: Struggled amidst a downturn in global commodity prices.
- Energy Minerals: Despite earlier optimism, firms like Aradel experienced sharp declines, closing 9.09% lower.
Best and Worst Performers
Top Gainers
- Honeywell Flour Mills PLC (HONYFLOUR): 10% gain, driven by robust demand in process industries.
- UAC PLC (UACN): Matched HONYFLOUR with a 10% rise, reflecting resilience in consumer markets.
Top Losers
- Multiverse Mining and Exploration PLC (MULTIVERSE): Dropped 9.73%, grappling with declining mineral prices.
- John Holt PLC (JOHNHOLT): Fell 9.68%, attributed to weak earnings in the consumer services sector.
Macro-Economic Indicators Driving the Market
- Inflation: Nigeria’s Consumer Price Index rose to 34.60% in November from 33.88% in October, impacting consumer purchasing power but showing a decelerating growth rate.
- Interest Rates: The Central Bank’s steady rate hikes have kept borrowing costs high, influencing sectoral performance.
- GDP Growth: Nigeria posted a robust 10% GDP growth in Q3 2024, bolstered by the agricultural and technology sectors.
Investor Outlook
The NGX ASI’s performance reflects optimism tempered by caution. The market’s resilience during the 8-day rally underscores investor confidence, but Friday’s dip highlights the need for vigilance amid global and domestic uncertainties.
As Nigeria approaches 2024’s end, factors such as fiscal policy adjustments, global commodity trends, and foreign exchange dynamics will play pivotal roles in shaping market trajectories.
Conclusion: A Dynamic Market Landscape
The NGX ASI’s mixed close this week mirrors the complexity of Nigeria’s economic and investment landscape. Investors remain hopeful that strategic reforms and improved macroeconomic indicators will sustain long-term market growth.
