NGX Sustains Uptrend On Impressive Earnings, As Investors Bet On Dividend Announcements

The bullish momentum and recovery on the Nigerian Exchange continued in the last trading week of January, in the midst of buying interests across some major sectors of the market and the influx of outstanding corporate earnings from players in different sectors and industries.

These, expectedly, impacted the composite NGX All-Share index positively for the period, as it closed 0.87% higher for the week, and 1.53% for the month of January. The impressive numbers from the companies are reflective of corporate Nigeria’s ability to navigate the nation’s economic waters and policies summersaults of the government and its economic managers.  Market reactions to surprising earnings and disappointing numbers had been revealed by the price actions of the various companies.

NGXASI Weekly Chart

The earnings reporting session of high liquidity, volume, momentum, sentiments and flow of funds have reflected in the high traded volume of 3.25 billion shares worth N69.20 billion in 77,270 deals on the Exchange last week, up from 3.13 billion shares valued at N76.552 billion in 61,456 deals in the preceding week. The NGX All-Share Index rose by 0.87% to 104,496.12, while Market Capitalization increased by 1.67% to N64.709 trillion. The listing of additional GTCO primary shares at N45 boosted the market cap.

Chellarams Weekly Chart

Chellarams Plc led the top gainers with a 60.44% increase in its share price from N4.07 to N6.53 each. The company is a diversified conglomerate involved in manufacturing, distribution, and industrial services across Nigeria. Shares of Vitafoam Nigeria Plc, a leading producer of flexible and rigid foam products, rose by 31.48% from N24.30 to N31.95 each last week; while Beta Glass Plc, a key player in the glass packaging industry serving the beverage and pharmaceutical sectors, gained 20.98% from N59.10 to N71.50 per share. Northern Nigeria Flour Mills Plc, which processes and markets wheat-based products gained 20.96%, rising from  each; just as Skyway Aviation Handling Company Plc, provider of aviation ground handling services, advanced by 20.66% from N33.15 to N40.00.

Veritas Kapital Weekly Chart

Among the top decliners, Veritas Kapital Assurance Plc, an insurance company offering general and life coverage lost 29.68% from N1.55 to N1.09; followed by MRS Oil Nigeria Plc, which engages in the downstream oil and gas sector, who’s shares declined by 18.96% from N201.00 to N162.90. Neimeth International, a pharmaceutical company specializing in the production of ethical drugs and consumer healthcare products, lost  each. Linkage Assurance lost 13.75% from N1.60 to N1.38. Secure Electronic Technology Plc, formerly known as National Sports Lottery Plc and involved in gaming and lottery services, lost 13.58% from N0.81 to N0.70.

NGXASI Monthly Chart (Opening)

Trending in the Economy:  Food prices in Nigeria increased from N2,862.14 in November to N2,920.13 in December 2024, reflecting a 91.6% rise compared to December 2023, according to Nigeria’s National Statistics Bureau. The South-East had the highest average price at N3,484.48, while the North-West had the lowest at N2,526.72. Prices of key food items like beans, onions, and palm oil saw sharp increases. Experts link the price surge to factors like regional insecurity, supply chain issues, and rising production costs, with projections indicating a growing food insecurity crisis in 2025.

Global Market and Oil:  U.S. stocks closed lower on Friday after the White House confirmed that President Donald Trump would impose tariffs—25% on Canadian and Mexican imports and 10% on Chinese goods—starting Saturday. Investors had been bracing for tariff-related news, with uncertainty clouding the economic and inflation outlook.

The Dow fell 0.8%, the S&P 500 lost 0.5%, and the Nasdaq dropped 0.3%. Apple shares declined 0.7% despite upbeat earnings commentary, while Chevron slid 4.6% after missing Q4 estimates. Energy stocks led declines, with Exxon Mobil down 2.5%.

Markets also reacted to economic data suggesting the Federal Reserve may keep interest rates steady for longer. Despite the day’s losses, major indexes posted gains for January, with the Dow up 4.7%, the S&P 500 rising 2.7%, and the Nasdaq advancing 1.6%.

Oil prices rose Friday in after-hours trading after President Trump announced plans to cut proposed tariffs on Canadian oil from 25% to 10% and delay duties on oil and gas until Feb. 18. WTI crude gained 73 cents (1%) to $73.48 a barrel after closing at $72.53, while Brent crude rose 54 cents (0.7%) to $76.54. Despite the gains, both benchmarks ended the week lower—Brent down 2.1% and WTI down 2.9%—as markets feared tariffs would drive up fuel costs and slow global growth.

Trump confirmed tariffs on oil and gas but suggested a lower rate for Canadian crude. Previously, he had threatened a 25% tariff on Canadian and Mexican exports starting Feb. 1.

Analysts warn tariffs could cut U.S. refinery output, pushing fuel prices higher. Energy Aspects’ Livia Gallarati expects a grace period for negotiations, with oil possibly exempted. Canadian Prime Minister Trudeau vowed a swift response to any tariffs.

Sectorial Indexes Charts

NGX Banking Index Weekly Chart

NGX Consumer Goods Index Weekly Chart

NGX Industrial Goods Index Weekly Chart

NGX Insurance Index Weekly Chart

NGX Oil & Gas Index Weekly Chart

NGX 30 Index Weekly Chart