…mark highest earnings in single year
Nigerian equities investors reaped unprecedented windfall in investment returns in the outgone year, 2024, recording over 50 percent increase or N21.85 trillion in value of their shares to N62.76 trillion in market capitalisation.
At the beginning of the year, the market capitalisation, which measures value of equities traded on the Exchange, opened at N40.918 trillion but closed at N62.76 trillion on the last trading day of the year, Tuesday, December 31, 2024.
Similarly, the benchmark All Share Index rose by 28,152.63 basis points or 37.65 per cent, from 74,773.77 points to 102,926.40 points at the close of trading yesterday.
It was the highest ever recorded returns in a single year. But above all, it is a remarkable departure from the poor performance of the 2015–2019 period but a very significant improvement on the performance of the past four years – 2020, 2021, 2022, and 2023.
Since 2020, the NGX AllShare Index (ASI) has delivered a stellar return of 283.45 per cent, climbing from 26,842.07 points at the end of 2019 to 102,926.40 points as of December 31, 2024. Standout years include 2020, 2023, and 2024, as investors sought higher real returns from equities amid negative yields in the fixed-income markets.
However, the domestic bourse concluded the final trading session of the year on a bearish note, with the NGX All-Share Index (ASI) retreating by 22 basis points to close at 102,926.40 points.
This downturn, spurred by selloffs in MTNN (-3.75%), ARADEL (-0.33%), and UBA (-0.87%), shaved N135.95 billion from the market’s capitalisation. Standout performers over the year included GEREGU (+188.22% y/y), SEPLAT (+146.75% y/y), and OANDO, which posted a remarkable 528.57% year-on-year gain.
However, not all stocks enjoyed the bullish trend; BUACEMENT (-4.10% y/y), ACCESSCORP (-3.00% y/y), and DANGSUGAR (-43.0% y/y) ended the year in the red. Sectorally, every index under review closed the year on a positive note.
The NGX Oil and Gas Index emerged as the top gainer, soaring by 160.29 per cent yearon-year, followed by robust performances from the NGX Insurance Index (+129.58% y/y) and the NGX Consumer Goods Index (+52.24% y/y). Activity in the final session showed heightened investor participation, with trade turnover value surging 160.28 per cent to N40.34billion compared to the previous day.
A total of 437.76 million shares worth N40.34 billion exchanged hands across 8,830 deals. ACCESSCORP (-0.62%) led the volume chart with 30.26 million shares traded, while ARADEL (-0.33%) dominated the value chart with transactions amounting to N12.97 billion.
Market breadth remained positive, with advancing stocks outpacing decliners. Universal Insurance (+10.00%) led 32 others on the gainers’ table while Eterna Oil (-10.00%) led 25 others on the losers’ table.
As the NGX wraps up another milestone year, market watchers remain optimistic for continued growth amidst a dynamic economic landscape.
At the ceremonial close of 2024 trading activities, NGX Chief Executive Officer Mr. Jude Chiemeka, represented by the Head of Trading and Products, Mr. Abimbola Babalola, commended stakeholders for their critical contributions to this extraordinary achievement.
“This year’s vibrant secondary market activity underscores the pivotal role of our trading license holders. Complementary macroeconomic policies and the effective oversight of the Securities and Exchange Commission have been instrumental in sustaining this growth trajectory,” he stated.
