- Bullish trend continues as equities investors gain N846.4bn
The Manufacturers Association of Nigeria has expressed a cautious outlook for the Nigerian manufacturing industry in the first half of 2024.
According to MAN’s “Manufacturing Sector Outlook for 2024,” released by its Director General, Segun Ajayi-Kadir, the sector may face challenges, with a possibility of recovery in the third quarter.
The association urged the Federal Government to recognize manufacturing as a key driver of sustained economic growth and prioritize the sector accordingly.
The outlook indicated that the first half of the year might be difficult, with a potential for recovery in the later part, relying on policy stimulus and a mix of domestic growth-driven and export-focused initiatives.
Ajayi-Kadir highlighted the challenges faced by the sector, including foreign exchange-related issues and high inflation rates, which may persist until mid-year.
However, there is hope for marginal improvement in manufacturing output in the third quarter as FX and interest rate challenges ease.
The anticipated recovery in the manufacturing sector is expected to be driven by government disbursement of budget capital provisions to various projects, with a preference for locally made products.
Ongoing infrastructure concessions, such as seaports, airports, and roads, may also contribute to the improvement of the manufacturing sub-sector.
The association emphasized the importance of government support, including lowering the country’s over-reliance on imported goods, following Executive Order 003, and encouraging local sourcing of raw materials.
Additionally, MAN called for the prioritization of foreign exchange and credit allocation to manufacturers and the implementation of measures to increase liquidity and stability.
MAN advised the Central Bank of Nigeria to collaborate with commercial banks to provide long-term, single-digit interest loans to the manufacturing sector, aiming to fast-track the realization of a $1 trillion economy.
The association’s recommendations are aimed at addressing challenges and promoting the growth of the manufacturing industry in Nigeria.
Bullish trend continues as equities investors gain N846.4bn
The Nigerian bourse continued its bullish trend midweek, with all indexes displaying gains in the green zone, fuelled by robust interest across stocks of varying price ranges.
The market closed on a positive breadth higher by 1,546.69 basis points.
The benchmark index, the NGX All-Share Index surged by 2.04 percent to reach a new high of 77,537.57 index points, reflecting investors’ ongoing portfolio realignment across diverse sectors.
The market capitalization of listed equities also experienced a 2.04 percent increase, reaching N42.4 trillion, as investors booked profits totaling N846.4 billion.
The year-to-date return of the index rose to 3.70 percent, and Wednesday’s trading session recorded 78 gainers against 7 laggards.
Notably, stocks such as BERGER, UBA, DANGSUGAR, FCMB, and IKEJAHOTEL garnered positive interest from equity investors, each experiencing a 10 percent appreciation in their share prices as market participants strategically positioned themselves.
However, a few laggards emerged, with LEARNAFRICA, CHAMPION, CILEASING, NGXGROUP, and ELLAHLAKES witnessing declines by 9.09 percent, 7.32 percent, 2.33 percent, 1.70 percent, and 1.64 percent, respectively.
Trading activity on the NGX reflected the prevailing bullish trend, evidenced by a 79.83 percent increase in traded volume (927.56 million units), a 24.11 percent rise in total deals (11,629 trades), and a substantial 91.83 percent surge in the total traded value (N10.69 billion).
Sector-wise, positive investor sentiment was observed, with the banking index leading gainers with a 6.66 percent increase, driven by positive movements in the prices of UBA, ETI, GTCO, FCMB, and ACCESS.
The Insurance and Consumer goods indexes followed suit with gains of 5.50 percent and 2.42 percent, respectively, attributed to buying interest in AIICO, CORNERST, IKEJAHOTEL, and DANGSUGAR.
The Industrial and Oil & Gas sectors also posted positive performances of 1.89 percent and 0.31 percent, propelled by price rallies in WAPCO and ETERNA OIL.
At the close of trading session, FIDELITYBK emerged as the most traded security by volume, with 108.11 million units traded in 473 trades, while UBA led in traded value at N1.54 billion.
