Nigeria’s equities market (NGX) closed the week ended December 13, 2024, with notable positive gain, reflecting investor optimism across key sectors. The composite NGX All-Share Index (ASI) rose by 0.72%, closing at 98,210.75 basis points, while market capitalization increased to ₦59.534tr. This overall growth was despite mixed performances among individual stocks, with certain sectors seeing higher investor activity than others.
NGXASI Daily Chart
In terms of trading volume, the market saw 2.729 billion shares worth ₦49.845 billion exchanged across 43,298 deals. This indicates a significant level of market participation and liquidity, with a notable surge in trading volumes in the consumer goods, banking, and oil sectors. Investor interest remained strong, particularly in companies that showed robust earnings reports or were benefiting from favorable market conditions.
NGX Banking Index Weekly Chart
The NGX Banking Index increased by 1.30%, reflecting gains from leading financial institutions, while the NGX Oil & Gas Index climbed 4.84%, driven by stronger performance in oil-related stocks. On its part,, the NGX Consumer Goods Index showed modest growth, signaling stability in the sector despite the challenges posed by inflationary pressures.
The top-performing stocks for the week were primarily from the beverages, financial services, and oil sectors. Golden Guinea Breweries PLC led the gainers, with its stock price surging by 60.00%, closing at ₦8.64 each. The price of Africa Prudential Plc soared 59.72% up, from ₦10.80 to ₦17.25, driven by strong fundamentals and growing investor interest in the shareholder services giant. Tantalizers followed with a 52.07% gain, closing at ₦1.84, while Conoil PLC and Coronation Insurance PLC also posted solid performances. Conoil’s stock appreciated by 33.52%, reaching ₦387.20, benefitting from positive developments in the oil sector, while Coronation Insurance’s share price rose by 25.23%, closing at ₦1.34 per share.
On the other hand, several companies faced declines, particularly in the construction and technology sectors. Secure Electronic Technology PLC recorded the biggest loss of the week, with a 22.86% drop, closing at ₦0.54. The company’s poor performance may be attributed to broader market concerns over its prospects in the electronic security and technology space. Austin Laz & Company PLC experienced a 14.74% loss, closing at ₦1.62 from an opening price of ₦1.90 apiece.
The loss may be linked to sector-wide challenges in distribution and retail, as well as rising operational costs. Haldane McCall PLC, which operates in the construction and engineering sectors, also saw its stock decline by 11.11%, closing at ₦5.20 each. The fall in its share price is likely tied to broader concerns in the construction industry, particularly regarding rising I input costs and project delays. Julius Berger Nigeria PLC and John Holt PLC also recorded losses, declining by 10.00% and 9.96% respectively. Julius Berger’s drop to ₦155.25 and John Holt’s decline to ₦7.23 may be linked to ongoing challenges in the construction sector, such as delayed infrastructure projects and rising costs.
Trend in the Economy: The Bank of Industry (BOI) has disbursed N22.89bn to 29 manufacturers as part of efforts to support Nigeria’s struggling manufacturing sector amid high production costs and poor sales. The funding is part of a broader N75bn initiative aimed at revitalizing the sector and fostering SME development.
Also, in a bid to tackle food insecurity, Nigeria’s Senate has approved a bill prohibiting the export of unprocessed corn exceeding 1 metric ton. Violators could face sanctions, including up to one year in prison. The is currently awaiting Presidential assent to become law. The move aims to curb informal corn exports fueled by naira devaluation and exchange rate gaps with neighboring nations.
U.S. Markets: The U.S. stock market experienced volatility, with major indices showing mixed results. The Dow Jones Industrial Average (DJIA) fell by 0.3%, while the S&P 500 and Nasdaq showed slight gains. Investors were focused on expectations for a potential rate cut by the Federal Reserve, which was supported by weaker-than-expected labor data, including a surprise increase in initial jobless claims. Europe: European markets were similarly volatile. The European Central Bank (ECB) reduced its interest rates, while the Swiss National Bank (SNB) made an unexpectedly large cut. The Eurozone economy is facing challenges, including low growth projections. Notably, the UK economy contracted slightly in October, signaling potential concerns about economic momentum in the region
In Japan, stocks saw modest gains. Market sentiment was bolstered by China’s announcement of fiscal and monetary policy adjustments. However, Chinese equities showed some weakness due to underwhelming policy announcements, despite pledges for more proactive fiscal measures for the coming year.
Oil prices rose around 2% on Friday, reaching a three-week high, driven by expectations that further sanctions on Russia and Iran could reduce supply, along with hopes that lower interest rates in Europe and the U.S. might increase fuel demand.
Brent futures climbed 1.5%, settling at $74.49 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 1.8%, closing at $71.29.
For the week, Brent saw a 5% increase, and WTI posted a 6% rise, finishing at its highest level since November 7.
Technical Analysis of the broader Market
NGXASI Weekly Chart (Opening)
The NGXASI has crossed the 99,000 psychological line as in the last market update. The santa claus rally has began but with only mild momentum. The market is currently trading far above the 8-day moving average which acts as auxiliary support and resistance. Investors confidence are building up daily as the market outperforms their expectations.
The market has traded confidently above the 99,000-resistance point and it is anticipated and expected that the market trade above 100,000 points before Christmas. Investors are currently confident of the market as shown by money flow reading of 72.4( A reading that connote strong investors confidence. Relative strength index of 70 has shown that the uptrend is sustainable but a little retracement is bound to happen. MACD is currently above the signal which is a big support to our forecasted region. Earnings momentum are responsible and will still be responsible for this current uptrend. Traders and Investors should watch out for stocks with strong earnings.
To succeed in any stock market globally, it’s crucial to master three essential skills. There are long periods where little seems to happen, and then there are days when decades of change occur. To profit from the market, technical analysis is critical, fundamentals are paramount, and patience is the foundation that ties them all together. Fundamental Analysis will tell you whether a stock(shares) is undervalued or overvalued. It tells you “What to buy”. The return of your money is more important than the return on your money. It is important not to buy expired products. Technical Analysis A lot of investors have failed in this aspect.This will tell you “When to buy” and “when to exit”. Patience is the father of them all. A lot of people have made millions on the platform of patience and have as well lose their all due to Impatience. Without patience, both fundamental & technicals are useless
NGX Insurance Index Weekly Chart
NGX Consumer Goods Index Weekly Chart
NGX Oil/Gas Index Weekly Chart
NGX Industrial Goods Index Weekly Chart
