NGX
Olumide Adesina•Thursday, January 2, 2025•1 min read
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The Nigerian major stock market expanded remarkably, giving investors a gain of N22 trillion in 2024. The NGX bourse, began last year with mixed feelings but ended with a 17-year high.
The all-share index, the primary metric used to assess the performance of listed stocks settled at 37 percent. The NGX market valuation increased by N22 trillion, closing at N62.763 trillion after trading at N40.918 trillion.
Analysts credited the expansion to plans for recapitalization of the banking industry, spurring capital-raising as banks introduced new shares through rights issues, public offerings, and listings, bringing significant liquidity to the market.
The NGX banking index, for example, increased by 21 points from 897.2 points in 2023 to 1092.81 points in 2024. Supported by price increases in GTCO (+41%), Zenith (+19%), UBA (+35%), Fidelity (+58%), and FCMB (+28%), the market was strong at 8%.
Policy changes intended to liberalize energy and foreign exchange prices improved investor confidence and market transparency, which raised market trading volumes.
In addition, a favorable climate for business operations and investments was produced by proposed tax reforms, such as the gradual reduction of income tax on company profits. These events demonstrated the NGX’s adaptability and resilience in 2024.
Nigerian listed companies’ improved earnings were the main driver of investors’ increased confidence in stocks despite macroeconomic challenges plaguing the country’s economy.
The consumer goods index increased from 1,121.29 to 1,706.62 index points posting a 52 percent return. Unilever (+103%) and UACN (+135%) were the main drivers of the improved performance. Gains in Dangote Cement (+50%) and Lafarge Wapco (+119%) drove the industrial goods index’s 31.5% growth.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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