The Nigerian Exchange (NGX) is ending the year on a high note, with investors adding over N1 trillion to their portfolios last week, marking a remarkable rally ahead of the Christmas season. The market continued to gain traction on Christmas Eve, as the All-Share Index (ASI) rose by 0.82%, closing at 102,186.03 points, bringing the total market capitalization close to N62 trillion.
This sharp rise in investor wealth is attributed to a combination of strong buying interest, particularly in blue-chip stocks and consumer goods companies. The ASI’s gains last week, which saw it rise from 99,378.06 points to 101,129.09 points, reflect its best weekly performance since March 2024. Over the week, investors saw a boost of N1.062 trillion in market value, with major players like ARADEL, GTCO, and Zenith Bank driving much of the upward momentum.
Despite some declines in major stocks such as MTN Nigeria and BUA Cement, the market has remained buoyant, with a year-to-date return of 35.2%, outpacing the nation’s inflation rate of 34.6%. The surge in the stock market is also being fueled by year-end buying, as many investors take positions before the holidays, pushing some companies to achieve new 52-week highs.
MTN Nigeria’s share price, which had been under pressure in previous weeks, saw a 9% gain on Christmas Eve, contributing to the overall positive sentiment. Similarly, UBA emerged as the most traded stock by volume, with 51 million shares changing hands, while DANGCEM led in trading value at N11.14 billion. The market saw 37 stocks appreciate, with MRS and IKEJAHOTEL both gaining 10%, leading the day’s rally.
This pre-Christmas surge is reflective of a broader trend in Nigeria’s financial markets, where the rally in equities has provided a welcome boost for investors looking to close the year with strong returns. With the market capitalization now nearing N62 trillion, there is a sense of optimism despite the broader economic challenges the country faces.
The ongoing bullish trend underscores the growing confidence in Nigeria’s stock market, as investors prepare for a festive season marked by both economic hardships and rising opportunities in the financial sector. However, with high inflation, the steep cost of living, and concerns about insecurity, many Nigerians may remain cautious about the holiday season, as they balance the joys of the festive period with the reality of financial strain.
