- Week Ended November 29, 2024
By Akintunde Oyedokun
Research Analyst
The Nigerian stock market showed mixed performances for the week ending November 29, 2024, with the benchmark NGX All-Share Index (ASI) shedding 0.33%, closing at 97,506.87 points. Market capitalization reduced to ₦59.107tr, reflecting a cautious sentiment among investors and traders.
During the week, a total of 2.68bn shares were traded, valued at ₦28.25bn across 35,654 deals. Despite some active trades, the market breadth remained negative, with 46 decliners, compared to 32 advancers, highlighting hesitation among investors in the broader market. Sectoral performances were varied, with some indices posting gains while others faced declines.
Top Performers of the Week
Livestock Feeds stood out as one of the biggest gainers, experiencing a significant 18.5% gain, closing at ₦2.18 per share. The company, a major player in the Nigerian animal feeds industry, has been expanding its operations with a focus on improving market share in the country’s growing poultry sector. Livestock Feeds has consistently been a prominent participant in the feeds production market, providing nutritional solutions for farmers, helping it remain resilient in a challenging economic environment.
Academy Press Plc also recorded notable gain during the week, as its share price surged 16.1% to close at ₦2.45 each. The company, known for its printing and publishing services, has seen growth due to increased demand for printed materials, particularly in the education sector. Its expansion into digital printing and publishing services is positioning the company for future growth despite market challenges.
Meanwhile, the share price of Secure Electronic Technology Plc improved by 15.8% to ₦0.11 per share. The company, which specializes in providing electronic security solutions, has gained investor attention due to its advancements in technology-driven security systems, catering to the increasing demand for safety and surveillance in both private and public sectors across Nigeria.
Jaiz Bank saw a 12.5% increase, closing at ₦1.62 each. As one of the first fully-fledged Islamic banks in Nigeria, Jaiz Bank has capitalized on the growing interest in ethical banking products and services. The bank’s focus on ethical banking practices has continued to draw a loyal customer base and improve its profitability, positioning it as a leader in the niche market.
Finally, shares of Champion Breweries Plc, a key player in the Nigerian beverage industry, appreciated by 10.3% to ₦5.15 each. The company’s growth was driven by strong sales in its beverage products, particularly its flagship beer and soft drink brands, as well as increased production capacity, which has helped it meet growing demand.
Top Decliners
On the downside, Neimeth International Pharmaceuticals Plc experienced a 15.7% decline, closing at ₦1.77 per share. Neimeth, which specializes in manufacturing pharmaceutical products, faced a challenging week as it struggled with rising production costs and delays in product distribution. The company has been working on increasing its market presence in Africa, but is facing stiff competition from other pharmaceutical brands.
Cornerstone Insurance Plc also recorded a significant decline, dropping 14.9% to close at ₦0.91 each. As a provider of insurance products and services Cornerstone has been impacted by the overall sluggish performance in the financial services sector, which has seen declining profitability amidst economic uncertainty and stiff competition from other insurers.
Another notable loser was FTN Cocoa Processors Plc, which saw its price fall 14.5%, closing at ₦0.47 per share. FTN, a player in the cocoa processing industry, has been affected by fluctuating commodity prices and reduced export volumes, making it difficult for the company to maintain profitability.
Royal Exchange Plc, a leading insurance and financial services company, also suffered a decline, as its stock falling 12.2% to ₦0.79 each. The company’s challenges stem from slow growth in its premium income and increasing competition in the Nigerian insurance market.
Finally, Japaul Gold & Ventures Plc saw a 10.8% drop, closing at ₦0.33 per unit. As a company involved in mining and natural resource exploration, Japaul has been dealing with market volatility in the commodities sector, which has put pressure on its earnings and stock performance.
The Nigerian stock market’s performance this week highlights the challenges faced by certain sectors, showing promise in others. While sectors like Insurance and Industrial Goods showed resilience, others, particularly in Pharmaceuticals and Financial Services, are grappling with pressures from inflation, production costs, and competition.
Going into the next week, market analysts predict a continuation of mixed performances, with opportunities in undervalued stocks, especially those in the consumer goods, banking, and insurance sectors.
Trending in the Economy: In November 2024, the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR) to 24.75%, a 200 basis point increase. This move is aimed at combating persistent inflation and stabilizing the Naira, which has been under pressure due to rising costs and foreign exchange challenges. The rate hike is expected to tighten liquidity, curb consumer spending, and attract foreign investment, though it may also slow down economic growth due to higher borrowing costs.
Additionally, the Cash Reserve Ratio (CRR) for merchant banks was raised from 10% to 14%, further tightening money supply, while these measures aim to address short-term inflationary pressures, the long-term economic outlook depends on the success of broader fiscal reforms.
Global Markets
The global stock markets closed on a mixed note as November wrapped up with significant gains in key indices, signaling optimism amid easing inflation concerns.
U.S. Markets
The S&P 500 gained 2.7% for the week, marking its strongest monthly performance this year. The Dow Jones added 1.9%, while the Nasdaq Composite surged 3.5%, driven by continued strength in technology stocks and broader sector participation.
European Markets
European indices reflected modest growth. Germany’s DAX rose 0.62%, while the UK’s FTSE 100 edged up by 0.07%, maintaining a 7.33% year-to-date growth. France’s CAC 40 advanced 0.78%, despite lagging in annual performance metrics.
Emerging Markets
Brazil’s Bovespa remained flat, reflecting stability, while other markets in South America displayed mixed trends.
Investors are optimistic about inflation cooling and central bank policies, though market analysts warn of potential volatility ahead. The broadening leadership across sectors, especially in financials and industrials, is seen as a healthy indicator for sustained growth.
Oil
Brent crude oil closed at $72.94 per barrel on November 29, 2024, experiencing a 0.31% decline. The week’s trading ranged from $72.56 to $73.47 per barrel, influenced by weaker-than-expected economic growth in the Eurozone and a 1.8 million barrel drop in U.S. crude inventories.
Despite this, concerns about lower global demand and a stronger U.S. dollar capped any significant price gains.
The outlook remains uncertain, with prices likely to stay range-bound depending on future economic and geopolitical developments.
