Equities trading on the platform of the Nigerian Exchange Limited extended its bullish run into the weekend January 10, 2025, posting 1.80 percent increase week-on-week to close at 105,451.06 points.
This performance translated to an impressive 37.65 percent year-to-date gain in 2024, which notably outpaces the local inflation rate of 34.60 percent as of November 2024.
The rally comes as investors assess Nigeria’s macroeconomic fundamentals and position themselves for opportunities ahead of Q4 2024 unaudited financial results, with banking stocks drawing the bulk of investor interest.
Market capitalisation mirrored the upward trajectory, advancing by 1.80 percent week-on-week to reach N64.30 trillion, compared to N63.17 trillion the previous week.
This translates to a remarkable gain of N1.14 trillion for equity investors, achieved over four bullish trading sessions out of five. Positive market breadth characterised the week, with 51 stocks advancing against 39 declining, while the year-to-date return on the index rose to 2.45 percent.
Trading activities also demonstrated significant strength, as the weekly average volume of traded shares increased by 79.5 percent to 4.7 billion units, while the value of transactions grew by 21.9 percent to N85.04 billion. The total number of weekly deals also surged, rising by 51.3 percent to 72,560 transactions, underscoring heightened market activity and robust investor participation.
On the sectoral front, performance was largely negative, with four out of five indices under our watch closing in the red zone.
The NGX-Banking Index stood out as the sole gainer, advancing by 1.94 percent week-on-week, driven by positive price movements in WEMABANK, FBNH, FCMB, and GTCO respectively.
However, the NGX-Insurance Index led the decliners, shedding 6.91 percent week-on-week due to losses in SUNU ASSURANCE, CONHALLPLC, PRESTIGE, and CORNERSTONE. Elsewhere, the NGX-Consumer Goods and NGX-Oil & Gas indices both recorded 0.34% declines, dragged down by price reductions in GUINNESS, OANDO, and INTERNATIONAL BREWERIES. Meanwhile, the NGX-Industrial Index fell slightly by 0.26% as CAVERTON, RTBRISCOE, and UPDC experienced negative price movements.
Top-performing stocks for the week included MULTIVERSE (+53.4 percent), HONYFLOUR (+31.7 percent), DAARCOMM (+25.7 percent), MTNN (+21 percent), and NCR (+20.7 percent), driven by strong investor demand. Conversely, SUNU ASSURANCE (-36.5 percent), CAVERTON (-15 percent), CONHALLPLC (-15 percent), RTBRISCOE (-14.3 percent), and JAIZBANK (-10.8 percent) were the worst performers, affected by profit-taking and sell-offs.
Commenting on the market performance in relation to the new week, the CEO, Globalview Securities Limited, Aruna Kebira said he expects the bullish momentum in the local bourse to persist in the new week, supported by anticipation of Q4 2024 unaudited financial results and preparations for the dividend earning season.
“Positive sentiment is likely to prevail as stocks continue to reach new historical highs, bolstered by favourable market valuations and outlooks. Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally,” he stated.
FBN Holdings reaffirms commitment to highest standards of corporate governance
FBN Holdings Plc has issued a statement to address media reports regarding two of its shareholders’ calls for an Extraordinary General Meeting.
The company has assured its stakeholders that this development will not affect its operations, as all businesses within the Group will continue providing uninterrupted customer services.
The statement signed by the Company Secretary, Adewale Arogundade reads, “We assure our valued customers, shareholders, investors, other stakeholders and the general public that we are taking all necessary steps to protect the interests of the Company and its subsidiaries.”
The Group emphasised its improving financial performance, reflected in higher market capitalisation and noted ongoing efforts to surpass the regulatory minimum capital well ahead of the stipulated deadline.
Additionally, FBN Holdings disclosed that its Registrar and Lead Issuing House are collating returns from receiving agents regarding the recently concluded Rights Issue, which closed on December 30, 2024. The company reaffirmed its unwavering commitment to the highest standards of corporate governance and assured stakeholders of its continued focus on sustainable growth and operational excellence.
