The Nigerian inventory market, tracked by the All-Share Index, concluded a stellar 12 months in 2024 with a exceptional achieve of 37.65%, fueled by resilient bullish momentum.
This spectacular efficiency continues a robust restoration that started in 2020, following two difficult years the place the index confronted declines of 17.81% in 2018 and 14.60% in 2019.
In a putting comeback, the index recovered in 2020 with a strong 50.03% enhance, outpacing main international benchmarks just like the S&P 500 and FTSE 100, which completed at 16.3% and 14.3%, respectively, through the pandemic.
Since then, the All-Share Index has persistently closed above its yearly opening worth from 2020, overcoming numerous macroeconomic challenges.
By December 31, 2024, the Nigerian inventory market—mirrored within the All-Share Index—achieved a market capitalization of N62.76 trillion, a staggering enhance of roughly N21.8 trillion from N40.91 trillion on the shut of 2023.
Noteworthy sectors similar to Oil & Gasoline and Insurance coverage led the cost, with year-to-date good points of 159% and 123%, respectively, as each large-cap and mid-cap shares collectively fueled the index’s ascent to new heights.
Market traits earlier than 2024
The All-Share Index started January 2020 at 28,843 factors, however it confronted important challenges within the first quarter because the pandemic infiltrated the worldwide economic system. A steep year-to-date decline took maintain in February and continued till September 2020.
- Nonetheless, beginning in October, a bullish momentum started to take form, and by December, the index closed the 12 months with a formidable achieve of fifty.03%, ending at 40,270 factors—outperforming each the S&P 500 and FTSE 100.
- In 2021, the index skilled a well-known sample, grappling with good points from February by September. But once more, the tide turned in October, culminating in a year-end efficiency of 6.07% by December.
The pattern continued into 2022, the place the index posted regular cumulative good points all year long, finally attaining a efficiency of 19.98%. By December 31, 2023, the All-Share Index had risen to a exceptional 74,773 factors, solidifying its upward trajectory.
Development in 2024
The Nigerian inventory market, tracked by the All-Share Index, delivered a year-to-date efficiency of 37.65% in 2024, sustaining the bullish momentum carried over from 2023.
- January ignited the market with a surprising 35% leap, fueled by 19 billion shares exchanging arms. Hovering from 74,773 to 101,154 factors, the index not solely delivered its finest month-to-month efficiency of the 12 months but additionally shone globally, trailing solely Argentina’s Merval because the world’s second-best-performing index.
- February introduced a slight pullback, with the index dipping to 99,980 factors. Nonetheless, March reversed this decline, pushing the index above 104,000 factors.
- April noticed strain from recapitalization efforts within the monetary companies sector, which affected funding sentiment. This led to a decline, with the index dropping to 104,562 factors, representing a 6% lower.
- From April to August, the All-Share skilled a retracement, closing at 96,580 factors by August.
- A turnaround started in September, because the index discovered assist and steadily recovered, reaching the 100,000-barrier by the third week of December.
As of December 31, the All-Share Index stands sturdy, closing above 102,000 factors, signaling resilience and renewed shopping for curiosity because the 12 months ends.
The appeal of the fourth quarter
Since 2020, the All-Share Index has persistently excelled within the fourth quarter, from October to December.
- In each 2020 and 2021, regardless of dealing with cumulative challenges from February to September, the index rebounded with bullish worth motion because the 12 months wrapped up.
- Whereas the index maintained constructive efficiency all through 2022, 2023, and 2024 from Q1 to Q3, the fourth quarter served to accentuate this momentum.
- In 2024, notable constructive worth motion emerged within the final quarter, probably spurred by favorable earnings stories from large-cap and mid-cap shares for the interval ending in September.
Wanting ahead, the launch of NGX Make investments—a cutting-edge digital platform geared toward streamlining Public Choices and Rights Points within the Nigerian capital market—on July 11, 2024, is predicted to spice up retail participation within the coming 12 months.
On the 2024 Investor Summit & Awards Dinner on December 18, 2024, Mr. Jude Chiemeka, CEO of the Nigerian Change Restricted (NGX), revealed plans for modern options, together with a blockchain-like interface designed to simplify and improve the funding expertise.
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