The Nigerian Alternate (NGX) began the second half of 2024 on a bearish be aware, because the market has declined by 0.39% over the previous two weeks, resulting in a N334 billion in its market cap.
On the shut of the week ending July 12, 2024, the NGX closed with an All-Share Index of 99,671.28, down from the opening index of 100,057.49 in the beginning of July.
The decline has led to a N333.5 billion decline within the NGX’s market cap, transferring from N56.602 trillion in the beginning of 2024’s second half to N56.268 trillion on the shut of buying and selling on July 12.
The market ended H1 2024 with a efficiency of 33.81%, as its ASI closed at 100,057.49. Nevertheless, considering its present ASI, the market has produced a year-to-date return of 33.3%, barely underperforming inflation within the nation.
Efficiency highlights
To this point, one of the best performing inventory within the second half of 2024 is Veritas Kapital Assurance, which has appreciated by 33.3% over the previous two weeks.
The inventory has a year-to-date return of 224.3%, making it the second-best performing inventory within the NGX this yr.
- Veritas Kapital Assurance is presently buying and selling with a share worth of N1.20, a slight decline from its all-time excessive of N1.26 achieved on July 8.
- Following Veritas Kapital Assurance is Conoil Plc, which has gained 30.4% thus far in July, with its share worth closing at a year-high N137. This yr, Conoil has delivered a year-to-date return of 63.2%, bolstered by stories of a exceptional 99.9% revenue development in 2023.
- Livestock Feeds is one other inventory with distinctive good points recorded in H2 2024, with a 25% appreciation thus far. Within the week ending July 12, 2024, the inventory gained 18.9%.
- Coronation Insurance coverage achieved a 17.9% appreciation within the week ending July 5, which contributed a 19.4% development recorded thus far within the month of July.
- AIICO Insurance coverage has achieved a 17.9% achieve thus far in July, with a year-to-date return of 40% achieved in 2024.
- Linkage Assurance has additionally achieved a 17.9% achieve in July, in addition to a year-to-date return of 40%.
- United Capital has achieved a month-to-date return of 17% in July, in addition to a year-to-date return of twenty-two.6%.
- Related Bus Firm Plc (ABC Transport) closed the week ending July 12 as one of the best performing inventory within the NGX, with a 20.3% return. Nevertheless, in July, the inventory has achieved a month-to-date return of 16.7%.
- Pink Star Categorical Plc is the tenth greatest performing inventory within the NGX thus far in July. The inventory has achieved a month-to-date return of 15.1%.
Commentary
The bearish efficiency of the NGX is a stark distinction from the pattern noticed within the second half of 2023. In 2023, the NGX recorded a 19% development within the first half, nevertheless, the market recorded sooner development within the second half, gaining about 22.6% in the course of the interval.
On the time, development available in the market was linked to sure {economic} reforms which propelled traders to show confidence within the Nigerian equities market. The bullish journey continued into the primary quarter of 2024, because the NGX’s All-Share Index appreciated to a brand new all-time excessive of 105,722.78 factors on February 18.
In Q2 2024, the NGX depreciated by 4.3%, occasioned by banking stocks shedding virtually a fifth of their worth. Because the market strikes deeper into the second half of the yr, capital-raising efforts by each banks and non-banks available in the market are prone to have dilutive results on the present shares available in the market.
It stays to be seen whether or not the bearish pattern within the NGX will persist, probably resulting in a market efficiency beneath final yr’s 45.8% appreciation.
