The Nigerian Exchange (NGX) closed the week on a positive note, with the All-Share Index (ASI) posting a 0.99 per cent gain on a week-on-week basis.
This upward trend, often referred to as the “Santa Claus Rally,” comes as the market wrapped up trading ahead of the Christmas holiday celebrations.
The Santa Claus Rally, also known as the December Effect, describes the tendency for stock markets to experience higher-than-average gains during the final days of the year.
Analysts attribute this phenomenon to factors such as increased consumer spending during the holiday season, heightened investor optimism, and end-of-year adjustments by institutional investors.
During the week, a total turnover of 1.39 billion shares worth N52.02bn was transacted across 33,411 deals. This marks a decline from the previous week’s turnover of 2.54 billion shares valued at N91.38bn in 51,406 deals.
The reduced trading activity can be attributed to the shortened trading week, as the Federal Government declared Wednesday, December 25, and Thursday, December 26, 2024, public holidays to celebrate Christmas.
The NGX All-Share Index closed at 102,133.30 points, while the market capitalization rose to N61.91trn. All other indices ended the week higher, with the exception of the NGX Oil and Gas Index, which dipped by 0.12 per cent. The NGX ASeM and NGX Sovereign Bond indices remained flat.
The Financial Services Industry dominated the activity chart, contributing 63.58 per cent and 34.17 per cent to the total equity turnover volume and value, respectively.
A total of 881.646 million shares valued at N17.77bn were traded in 14,968 deals within the sector.
The oil and gas sector followed, with 103.76 million shares worth N12.44bn traded across 4,554 deals. The services industry came in third, recording a turnover of 98.62 million shares valued at N482.17m in 1,998 deals.
United Bank for Africa Plc, Universal Insurance Plc, and Zenith Bank Plc emerged as the top equities by volume. Together, these three accounted for 294.03 million shares worth N8.12bn in 3,834 deals, representing 21.20 per cent of the total equity turnover volume and 15.60 per cent of the total value.
Investor sentiment remained bullish, as 64 equities appreciated in price during the week, an increase from 61 in the previous week. Conversely, 20 equities depreciated, down from 26 in the prior week, while 69 equities remained unchanged, compared to 66 in the previous week.
As the year draws to a close, market participants will be closely monitoring macroeconomic indicators and corporate earnings reports for signs on the market’s direction.
The sustained optimism seen during the Santa Claus Rally could set a positive tone for the early trading sessions of 2025.