By Bamidele Ojo (Capital Market Reporter)
The Nigerian equities market achieved a historic milestone in 2024, with the Nigerian Exchange Group All Share Index (NGXASI) advancing by 37.56% year-on-year (y/y) to close at 102,926.40 points.
This marked the fifth consecutive year of positive returns for the NGXASI, and the index surpassed the 100,000-point mark for the first time, despite navigating mixed investor sentiments driven by policy announcements and corporate action releases.
The NGXASI outpaced global benchmarks in 2024, significantly surpassing the returns of the Emerging Market Index (+5.05% y/y) and the Developed Market Index (+17.00% y/y).
Additionally, the market stood out as attractively valued, with a price-toearnings (P/E) ratio of 10.26x, compared to 13.73x for the Emerging Market Index and 22.02x for the Developed Market Index. Domestic investors played a critical role in the market’s resilience, accounting for 84% of total transaction value as of November 2024.
This strong local participation helped shield the market from external shocks and global financial contagions.
CSL Stockbrokers Limited however maintain an optimistic outlook for 2025, driven by expectations of increased Foreign Portfolio Investment (FPI) participation, corporate actions, and potential new listings.
We foresee reduced currency volatility and a mild devaluation, which could help mitigate foreign exchange losses, improve corporate profitability, and boost investor confidence, thereby attracting greater FPI inflows.
Growth is anticipated across several key sectors. NNL.