Abuja:According to News Agency of Nigeria, the Nigerian equities market made a strong recovery in September, achieving a gain of N5.365 trillion in market capitalisation after experiencing a N587 billion loss in August. This resurgence was attributed to improved macroeconomic conditions, Nigeria’s reclassification to the FTSE Russell Frontier Market status, and renewed investor confidence.
Market capitalisation increased by 3.40 percent, rising from N157.739 trillion at the beginning of September to N163.104 trillion by the end of the month. The All-Share Index (ASI) also saw an appreciation, climbing from 244,199.39 points to 251,211.67 points, a gain of 7,012.28 points or 2.87 percent.
During September, the market recorded gains in 16 out of 22 trading sessions, while six sessions closed lower. Although the volume of shares traded declined by 33.24 percent, the value of transactions increased by 43.01 percent. A total of 17.936 billion shares worth N907.841 billion were traded across 1,117,428 transactions.
The performance in September marked a recovery from the market’s decline in August, where profit-taking and repositioning by investors affected trading sentiment. Several companies, including Seplat Energy, First HoldCo, and Zenith Bank, saw significant gains in their share prices.
Conversely, some companies like United Bank for Africa and Access Holdings experienced declines in their share prices. Meanwhile, the share prices of companies such as Skyway Aviation Handling Company and Airtel Africa remained unchanged.
Mr. David Adonri, Vice President of Highcap Securities Ltd., commented on the market’s performance, attributing the rally to improved macroeconomic conditions, foreign exchange stability, and renewed investor confidence. He also noted that Nigeria’s return to the FTSE Russell Frontier Market status and favorable developments in the external sector, like high crude oil prices, supported the market.
Adonri highlighted that the market rally pushed the year-to-date return above 60 percent, with the All-Share Index surpassing the 250,000-point level. Looking ahead, he suggested that the market could benefit from increased portfolio positioning by investors in anticipation of full-year corporate distributions.
He further identified the planned Dangote Refinery IPO and its eventual listing on the Nigerian Exchange as potential developments that could deepen the market. Adonri expressed optimism that the equities market would continue to strengthen toward the end of 2026 and into 2027, supported by improved macroeconomic conditions and increased investor participation.