- Oil prices record gains on first trading day of 2025
Equities trading on the Nigerian Exchange Limited closed the first session of the New Year on a positive note, with the All-Share Index increasing by 0.25 percent to close at 103,180.14 points.
The uptick translated to investors gaining ₦154.7 billion as well as increasing to the market capitalization a new high ₦62.92 trillion and boosting the year-to-date (YTD) return to 0.25 percent.
Sectoral performance was largely positive, with significant gains in banking up by 0.27 percent, insurance gained 9.50 percent, and consumer goods rose by 0.16 percent, while the oil & gas and industrial goods sectors recorded slight declines of 0.03 and 0.16 percent, respectively.
Market sentiment remained bullish, as 58 stocks advanced compared to 8 decliners.
Among the top gainers were CUTIX, INTENEGINS, MANSARD, NCR, and ROYALEX, all gaining 10.00 percent. In contrast, ELLAHLAKES, NASCON, CWG, FIDELITYBNK, and INTBREW led the laggards.
Trading activity was robust, with trading volume and value surging by 89.55 percent and 33.09 percent, respectively, although the number of transactions declined by 85.95 percent.
Overall, 829.75 million shares worth ₦5.67 billion were traded across 11,752 transactions, with ROYALEX emerging as the leader in trading volume, exchanging 290.9 million shares valued at ₦318.6 million in 154 deals.
Oil prices record gains on first trading day of 2025
Also, crude oil achieved modest price increase on Thursday, the first trading day of 2025 as Brent crude futures rise to $74.80 per barrel, up by 17 cents or 0.06 percent, while U.S. West Texas Intermediate (WTI) crude futures increase to $71.91 per barrel, gaining 19 cents or 0.26 percent in early trading.
Although the price appreciation was seen as an indication of confidence in the stability of market condition, the new price is however a shortfall from the Federal Government’s benchmark price of $75 per barrel posited in its 2025 budget.
The slight uptick follows a positive close to 2024, where Brent added 65 cents, and WTI gained 73 cents on New Year’s Eve.
Oil prices throughout 2024 fluctuate due to geopolitical tensions in the Middle East and declining oil demand from China.
Investors remain optimistic about a potential rebound in China’s economy, which could boost global oil demand. In his New Year’s address, Chinese President Xi Jinping pledges to adopt aggressive policies to stimulate economic growth in 2025.
Data from recent surveys indicate a slowdown in factory activity in December 2024 but point to growth in the services and construction sectors, hinting at the effects of government stimulus.
However, concerns persist about possible trade tensions as President-elect Donald Trump prepares to take office on January 20, potentially impacting global economic dynamics.
Meanwhile, market analysts say China’s oil consumption will peak in 2025, potentially driving prices higher. Projections also suggest demand could reach 770 million tonnes this year.
Similarly, India, now the world’s most populous nation, is expected to surpass China as Asia’s largest oil consumer. Rising demand from India could significantly impact global prices.
