Economy
NGX Bucks 2015 to 2019 Trend, Thrives in Roaring 20s as Index Gains 37.65% in 2024
The Nigerian Exchange (NGX) Limited has marked a remarkable turnaround, breaking away from the poor performance of the 2015–2019 period to thrive in the 2020s. Following the oil price crash in 2015 and the ensuing recession in 2016, the 2020s have ushered in a period of unprecedented growth for Nigeria’s stock market.
Since 2020, the All-Share 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 2024. Standout years include 2020, 2023, and 2024, as investors sought higher real returns from equities amid negative yields in the fixed-income markets. The index closed 2024 with an impressive annual growth of 37.65 per cent.
The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria (CBN) and the federal government, has significantly boosted the performance of the stock market. Foreign capital inflow has steadily increased, rising from a low of 4 per cent in mid-2023 to an average of 16 per cent by November 2024.
Additionally, high-profile listings have energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods. These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.
At the Closing Gong Ceremony marking the end of 2024 trading activities, NGX’s chief executive of Mr Jude Chiemeka, represented by the Head of Trading and Products, Mr Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).
“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process,” he said.
CIS President and Chairman of Council, Mr Oluropo Dada, and ASHON Chairman, Mr Sam Onukwue, represented by the 2nd Vice Chairman, Mrs Ify Rita Ejezie, emphasized the pivotal role of stockbrokers in driving the capital market growth. They reiterated their commitment to advocating for policies that enhance market development.
Despite the impressive growth, challenges remain. According to Proshare’s 2025 market outlook, Nigeria’s capital market continues to grapple with high transaction costs, information asymmetry, monetary tightening, low trading volumes, and wide bid-ask spreads, all of which stifle liquidity. However, the report underscores the potential of leveraging the equity market through the listing of national assets, such as NNPC, to unlock liquidity and stimulate domestic and foreign investment.
Temi Popoola, GMD/CEO of Nigerian Exchange Group, reflected on the market’s resilience and growth trajectory: “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”
He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 0.39 per cent on Friday as the demand for local equities continued to increase.
During the final trading session of the week, the insurance maintained its upward trend with a growth of 7.81 per cent as the banking index appreciated by 1.08 per cent, the consumer goods sector rose by 0.52 per cent, and the industrial goods counter expanded by 0.33 per cent, while the energy space went down by 0.49 per cent.
At the close of business, the All-Share Index (ASI) jumped by 406.19 points to 103,586.33 points from 103,180.14 points, and the market capitalisation increased by N248 billion to N63.166 trillion from N62.918 trillion.
The bourse recorded 67 appreciating shares and 11 depreciating shares, implying a positive market breadth index and strong investor sentiment.
Chams, Omatek, NCR Nigeria, Learn Africa, and Regency Alliance topped the gainers’ table after they gained 10.00 per cent each to finish at N2.31, 88 Kobo, N6.05, N4.95, and 88 Kobo, respectively.
On the flip side, TotalEnergies lost 9.74 per cent to trade at N630.00, CWG depreciated by 6.04 per cent to close at N7.00, Thomas Wyatt went down by 5.26 per cent to N1.80, ABC Transport crumbled by 4.07 per cent to N1.18, and UAC Nigeria shed 3.19 per cent to N31.90.
Yesterday, investors traded 709.3 million stocks valued at N8.2 billion in 13,593 deals compared with the 829.8 million stocks worth N5.7 billion transacted in 11,752 deals on Thursday, representing a slowdown in the trading volume by 14.52 per cent and a rise in the trading value and number of deals by 43.86 per cent and 15.67 per cent, respectively.
At the close of business, Chams topped the activity log with 58.1 million equities sold for N133.8 million, Veritas Kapital traded 55.1 million shares valued at N89.2 million, Abbey Mortgage Bank exchanged 50.1 million stocks for N165.5 million, AIICO Insurance transacted 39.7 million equities worth N68.3 million, and NPF Microfinance Bank sold 34.3 million stocks valued at N64.0 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its positive start to the year with a 0.08 per cent rise on Friday, January 3.
The market saw a gain of N840 million, with the value of the alternative bourse growing to N1.046 trillion from the N1.045 trillion it closed a day earlier as the NASD Unlisted Security Index (NSI) made an addition of 2.43 points to wrap the session at 3,052.34 points compared with 3,049.91 points recorded at the previous session.
The appreciation posted yesterday at the NASD OTC exchange was caused by two price gainers led by Industrial and General Insurance (IGI) Plc which jumped by 2 Kobo to end at 20 Kobo per share compared with the preceding session’s 18 Kobo per share and UBN Property Plc, which improved its value by 16 Kobo to close at N1.98 per unit, in contrast to Thursday’s closing price f N1.82 per unit.
The market posted a price loser, which was FrieslandCampina Wamco Nigeria Plc as it dropped 18 Kobo to finish at N39.76 share versus the previous day’s N39.94 per share.
There was an 856.6 per cent surge in the volume of securities traded in the session to 11.3 million units from the 1.2 million units traded in the preceding session.
Equally, there was a jump in the value of shares traded yesterday by 1,078.4 per cent to N56.8 million from the N4.8 million made previously, and the number of deals increased by 22.7 per cent to 27 deals from 22 deals.
FrieslandCampina Wamco Nigeria Plc was the most active stock by value (year-to-date) with 1.4 units worth N55.8 million, IGI Plc came next with 10.6 million units valued at N2.1 million, and 11 Plc was in third with 6,45 units sold for N1.4 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, FrieslandCampina Wamco Nigeria Plc came next with 1.4 million units valued at N55.8 million, and UBN Property Plc followed with 275,740 units worth N545,965.
By Adedapo Adesanya
The Naira appreciated against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 3 by N4.18 or 0.27 per cent to N1,538.23/$1 compared with Thursday’s closing rate of N1,538.23/$1.
Also, the domestic currency improved its value against the British Pound Sterling in the official market yesterday by N9.35 to wrap the session at N1,902.55/£1 compared with the previous day’s N1,911.90/£1 and against the Euro, the Nigerian currency gained N9.93 to settle at N1,579.52/€1 versus the previous session’s N1,589.45/€1.
Although towards the end of last year, the Naira recorded some form of stability, triggers like devaluation and earlier pressure saw it conclude 2024 with significant depreciation across foreign exchange (FX) markets, recording a 40.9 per cent loss against the Dollar.
At the black market on Friday, the Naira maintained stability against the US Dollar at N1,655/$1, according to data gathered by Business Post.
In the cryptocurrency market, prices were largely positive for the benchmarked tokens ahead of the inauguration of President Donald Trump, who has promised support to the crypto industry in his second time in the White House.
Rising activity and a bump in revenue, fees, new wallets and on-chain volumes have also indicated further support for digital assets.
The highest gainer was Dogecoin (DOGE) which jumped by 15.2 per cent to sell at $0.388, followed by Litecoin (LTC), which went up by 6.9 per cent to $111.89, Ethereum (ETH) rose by 4.7 per cent to trade at $3,595.65, and Cardano (ADA) improved by 4.3 per cent to close at $1.08.
Further, Solana (SOL) recorded a 4.0 per cent appreciation to sell at $216.48, Binance Coin (BNB) grew by 2.4 per cent to finish at $718.07, Bitcoin (BTC) expanded by 2.0 per cent to close at $98,211.48, and Ripple (XRP) recorded a 1.4 per cent growth to settle at $2.45, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
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