Nigerian Stock Market Records Exceptional Growth in 2024, Led by Oil and Gas Sector
The Nigerian stock market, as represented by the All-Share Index, showcased a remarkable performance in 2024, concluding the year with a notable increase of 37.65%. This achievement was primarily fueled by significant gains in mid and large-cap stocks, which experienced substantial surges in their share prices.
Among various sectors, the Oil and Gas sector emerged as the standout performer, boasting an impressive year-to-date increase of 160%. The Insurance sector followed closely behind, with a commendable growth rate of 123.15%.
At the beginning of the year, the NSE Oil and Gas Index stood at 1,043.60 points, and January saw positive momentum, supported by a trading volume of 90.6 million shares. Although the index faced slight setbacks in March and April, it demonstrated remarkable resilience, ultimately finishing in positive territory for ten out of twelve months. This robust trend can be attributed to the stellar performances of numerous large and mid-cap stocks thriving amid favorable market conditions.
Highlighting the top five oil and gas companies in Nigeria based on their share price performance from January 1 to December 31, 2024, we see the following:
5. Total Energies Marketing Nigeria Plc
In fifth place, Total Energies Marketing Nigeria Plc achieved a commendable year-to-date performance of 81.30%. The shares started the year at N385 but encountered challenges in the first half, dropping to a low of N321.50 in April. However, a strong recovery began in June, pushing the stock back up to N388.90, prompted by vigorous market activity. A significant surge of 73% in August followed the release of its Q2 earnings report, which indicated a pre-tax profit of N13.73 billion—an impressive 95% year-over-year growth. By December, the stock closed at N698, resulting in a year-to-date gain of 81.30%.
4. MRS Oil Nigeria Plc (Chevron)
Next, MRS Oil Nigeria Plc (Chevron) claimed the fourth position with a robust year-to-date increase of 107.43%. The stock commenced the year at N105 and saw initially positive movements before experiencing stagnation from March to November. A pivotal moment occurred in October when the company announced a pre-tax profit of N6.2 billion, marking a notable 108.9% increase from the previous year. This growth was largely fueled by a 141.90% spike in revenue, predominantly from increased sales of premium motor spirit, which accounted for 85% of its earnings. The stock concluded December with a remarkable 65% rally, ending the year at N217.80.
3. Seplat Energy
Seplat Energy secured third place with an impressive year-to-date performance of 146.75%. Beginning the year at N2,310, the stock gained traction mid-year, likely bolstered by notable insider trading activities. A key event was the acquisition of 22,571 shares by the company’s chairman, Udo Udoma, in late September. October proved to be a standout month, with the stock experiencing a notable 39% surge. By December, shares closed at an impressive N5,700, affirming Seplat Energy’s strong market standing and growth potential.
2. Conoil Plc
Taking the second position, Conoil Plc marked an impressive year-to-date growth of 361.50%. Starting at N83.90, the stock saw continuous growth, particularly in the first half of the year. This surge was likely fueled by the positive reaction to its FY 2023 financial results, which reported a staggering 99% increase in profit after tax, reaching N9.87 billion. This positive trend persisted into the third quarter as strong performance elevated investor confidence. By the end of December, Conoil’s shares had ascended significantly, closing at N387.20.
1 . Oando
Oando topped the list with a phenomenal year-to-date performance of 528.57%. Initiating the year at N10.50, the stock exhibited extraordinary growth throughout 2024, largely propelled by its transformative $783 million acquisition of Nigeria Agip Oil Company. This strategic move enhanced Oando’s market capitalization to N1 trillion, garnering robust investor interest. By December, the company’s shares had surged to N66, reflecting an outstanding year-to-date gain of 528.57%, positioning Oando firmly at the forefront of the oil and gas sector in Nigeria.
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