The Nigerian equities market has reached a record high, with the market capitalization climbing to N163.66 trillion. This represents a 0.93% increase from the previous week's close of N162.16 trillion. The NGX All-Share Index also advanced from 249,804.56 points to 252,113.41 points, representing a weekly gain of 0.92%. This latest record comes just a week after the NGX crossed the N162 trillion capitalization threshold for the first time.
The return of foreign investors, following Nigeria's re-entry into the FTSE Russell Frontier Market Index, has contributed to the market's growth. Nigeria formally returned to the FTSE Russell Frontier Market classification on September 21, after being moved to 'Unclassified' status in 2023. This reclassification led to targeted buying, with foreign and institutional investors targeting tier-one banking stocks, particularly those included in the FTSE Frontier index basket.
On the first trading session under the new classification, the NGX All-Share Index rose 0.14% to 250,156.80 points, while market capitalization increased to N162.39 trillion. The buying broadened on Tuesday, pushing the index another 0.18% higher to 250,614.66 points and lifting market capitalization to N162.68 trillion. Fourteen of the 31 Nigerian stocks in the FTSE Russell basket gained that day, with Stanbic IBTC Holdings, United Bank for Africa, and Fidelity Bank among the major advancers.
Banking stocks were particularly important to the early-week rally, with financial-sector equities accounting for a substantial share of market activity. Fidelity Bank, Zenith Bank, Access Holdings, Sterling Financial Holdings, and GTCO were among the most actively traded stocks. However, the market's record run cannot be attributed exclusively to foreign capital, as buying spread across a wider group of domestic equities.
By Wednesday, 43 stocks gained against 20 decliners, lifting market capitalization by N374.1 billion to N163.06 trillion and the ASI by 0.23% to 251,191.02 points. The decisive sectoral shift came on Thursday, when the NGX Oil & Gas Index surged 3.95%, making it the day's strongest sector and helping push the overall market capitalization up by N622.51 billion to N163.68 trillion.
The Thursday surge was significant, as it showed that the market's latest record is not being driven by a single trade or one group of stocks. The rally has rotated between financials, large-cap equities, and energy names, although the intensity of buying has varied from session to session. On Friday, the ASI slipped marginally by 0.015% to 252,113.41 points, while market capitalization eased by about N20 billion to N163.66 trillion.
The more important question for the market now is whether the renewed foreign visibility created by the FTSE reclassification can translate into sustained portfolio inflows rather than a short-lived repricing of selected large-cap stocks. The reclassification creates the opportunity for Nigerian equities to return to the radar of global frontier-market investors. NGX Group said the inclusion of Nigerian companies in the FTSE Frontier Index Series should increase the market's visibility and potentially stimulate global investor appetite.
Key points
- The Nigerian equities market has reached a record high of N163.66 trillion, driven by foreign investment and oil stocks.
- The return of foreign investors, following Nigeria's re-entry into the FTSE Russell Frontier Market Index, has contributed to the market's growth.
- The market's growth has been driven by a combination of foreign capital and domestic buying, with the rally rotating between financials, large-cap equities, and energy names.
