With the NGX All-Share Index posting a 37.65 percent return in 2024, the constituent indices in the market showed remarkable performances that underscored the resilience of the Nigerian equity market.
Fuelled by stellar performances from Oando and Conoil, the NGX Oil and Gas Index emerged as the market’s top-performing index of the year.
While banking stocks recorded a cumulative 21 percent gain, the NGX Banking Index lagged, making it a relative underperformer among the different sectors. In this story, BusinessDay tracks some of the best-performing sectors in the NGX in 2024.
1. Oil and Gas – 160%
Driven by stellar performances of Oando (+529 percent) and Conoil (+362 percent) in 2024, the Oil and Gas sector was the best-performing sector in the NGX in 2024. During the year, investors bet heavily on expected gains from the corporate actions that occurred in the petroleum scene.
The NGX Oil and Gas index saw impressive performances across all constituent stocks in 2024, with standout gains that underscored the sector’s strength. MRS Oil Nigeria surged by 107 percent, Conoil delivered a remarkable 362 percent return, Seplat gained 147 percent, TotalEnergies rose by 81 percent, and Eterna Plc advanced by 75 percent.
2. Insurance – 123%
Insurance stocks on the NGX were some of the best performing in 2024, as tracked by the NGX Insurance Index. In 2024, the index returned 123 percent, as it moved from 321.66 to 718 during the year.
Notable performers during the year included Sunu Assurances, which recorded a 877 percent gain, Veritas Kapital Assurance with a 268 percent increase, and Coronation Insurance, which returned 231 percent. AIICO Insurance posted a 79 percent gain, while Cornerstone Insurance achieved a solid 125 percent growth, reflecting the momentum in the insurance sector in 2024.
Read also: NGX records N12.17trn worth of FGN Bonds, Corporate listings in 2024
3. Consumer Goods – 54%
The NGX Consumer Goods Index which tracks the performance of stocks in the consumer goods sector returned 54 percent in 2024. Despite the weak financial performance of many consumer goods companies, investors remained optimistic, wagering on the potential of the sector’s constituent equities to deliver value.
Among the standout performers in the consumer goods sector on the NGX in 2024 were BUA Foods, with a remarkable 115 percent gain, and Unilever Nigeria, which delivered a 123 percent return. In contrast, Nestle Nigeria faced a challenging year with a 20 percent decline, while NASCON recorded a steep 42 percent drop, highlighting the mixed fortunes within the sector in the past year.
4. Industrial Goods – 32%
Industrial goods stocks listed on the NGX posted modest returns in 2024, with the NGX Industrial Goods Index slightly underperforming the NGX All-Share Index. The NGX Industrial Index posted a 32 percent return in 2024, majorly driven by the 261 percent gain posted by Julius Berger Nigeria. Lafarge Africa was also a stellar performer in the sector, with a 122 gain.
Other constituent stocks such as Dangote Cement posted a 50 percent gain, BUA Cement posted a 4 percent decline.
5. Banking – 21%
The banking sector emerged as the weakest performer in the Nigerian equities market in 2024. The NGX Banking Index posted a modest 21 percent gain for the year, as investor sentiment was dampened by bearish reactions to the Central Bank of Nigeria’s mandated recapitalization policy.
Among the top-performing banks in 2024 were Wema Bank, which gained 63 percent, Fidelity Bank with a 61 percent return, Jaiz Bank gaining 55 percent, and GTCO Holdings delivering a solid 41 percent return.
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