How NGX Hit an N18.2 Trillion Growth Milestone Despite Headwinds
Market Overview
In the first 11 months of 2024, Nigeria’s stock market defied economic pressures, growing by an impressive N18.2 trillion. This reflects a 44.5% increase in market capitalization, which climbed from N40.918 trillion in January to N59.107 trillion in November.
The NGX All-Share Index (NGX ASI) surged 30.4% year-to-date, closing at 97,506.87 points, up from 74,773.77 points in January.
Driving Factors Behind the Rally
1. Sectoral Performance:
• Strong buy interest in financial services, consumer goods, and industrial goods sectors.
2. Blue-Chip Stocks Surge:
• Airtel Africa: +14% (N2,156.90 per share).
• Dangote Cement: +49.7% (N478.80 per share).
• Seplat Energy: +129% (N5,300 per share).
• Zenith Bank: +15% (N44.50 per share).
• GTCO: +30.7% (N52.95 per share).
3. Strategic Listings:
• Transcorp Power Plc (valued at N2.7 trillion).
• Aradel Holdings (valued at N2.25 trillion).
4. Foreign Investor Participation:
• Foreign investors traded N744.34 billion (17% participation), a sharp rise from N291.38 billion in 2023 (10% participation).
Challenges Faced by the Market
• Double-Digit Inflation: Peaked at 33.88% in October 2024 (up from 28.2% in November 2023).
• Monetary Policy Tightening: The MPR rose to 27.50% in November 2024, marking six hikes since February.
• Currency Volatility: The Naira weakened to N1,663.40 per USD from N942.12 in 2023.
Market Outlook for 2024 and Beyond
• Analysts note mixed corporate performances across listed firms. While some companies reported strong results, others showed mixed or disappointing figures.
• Despite impressive gains, the market’s growth in 2024 (30.4%) may fall short of the 45.9% performance recorded in 2023.
Expert Insight
According to Ambrose Omordion, COO of InvestData Consulting, the stock market’s rally was bolstered by:
• Renewed foreign investor interest following economic reforms.
• Impressive corporate earnings in key sectors.
The NGX continues to demonstrate resilience despite macroeconomic challenges, positioning itself as a key player in Africa’s investment landscape.
This remarkable growth highlights the potential of Nigeria’s stock market even amid significant economic turbulence.
Market Overview
In the first 11 months of 2024, Nigeria’s stock market defied economic pressures, growing by an impressive N18.2 trillion. This reflects a 44.5% increase in market capitalization, which climbed from N40.918 trillion in January to N59.107 trillion in November.
The NGX All-Share Index (NGX ASI) surged 30.4% year-to-date, closing at 97,506.87 points, up from 74,773.77 points in January.
Driving Factors Behind the Rally
1. Sectoral Performance:
• Strong buy interest in financial services, consumer goods, and industrial goods sectors.
2. Blue-Chip Stocks Surge:
• Airtel Africa: +14% (N2,156.90 per share).
• Dangote Cement: +49.7% (N478.80 per share).
• Seplat Energy: +129% (N5,300 per share).
• Zenith Bank: +15% (N44.50 per share).
• GTCO: +30.7% (N52.95 per share).
3. Strategic Listings:
• Transcorp Power Plc (valued at N2.7 trillion).
• Aradel Holdings (valued at N2.25 trillion).
4. Foreign Investor Participation:
• Foreign investors traded N744.34 billion (17% participation), a sharp rise from N291.38 billion in 2023 (10% participation).
Challenges Faced by the Market
• Double-Digit Inflation: Peaked at 33.88% in October 2024 (up from 28.2% in November 2023).
• Monetary Policy Tightening: The MPR rose to 27.50% in November 2024, marking six hikes since February.
• Currency Volatility: The Naira weakened to N1,663.40 per USD from N942.12 in 2023.
Market Outlook for 2024 and Beyond
• Analysts note mixed corporate performances across listed firms. While some companies reported strong results, others showed mixed or disappointing figures.
• Despite impressive gains, the market’s growth in 2024 (30.4%) may fall short of the 45.9% performance recorded in 2023.
Expert Insight
According to Ambrose Omordion, COO of InvestData Consulting, the stock market’s rally was bolstered by:
• Renewed foreign investor interest following economic reforms.
• Impressive corporate earnings in key sectors.
The NGX continues to demonstrate resilience despite macroeconomic challenges, positioning itself as a key player in Africa’s investment landscape.
This remarkable growth highlights the potential of Nigeria’s stock market even amid significant economic turbulence.