The Nigerian Exchange Limited (NGX) ended August on a strong note as renewed buying interest pushed the All-Share Index (ASI) up 1.20 per cent on the final trading day, helping the market retain most of its impressive gains for the year. The latest rise lifted the NGX’s year-to-date return to 56.93 per cent, despite a month marked by profit-taking and portfolio rebalancing.
The late rally also helped limit the market’s overall August decline to just 0.44 per cent, following the strong performance recorded in the first seven months of the year. Investors returned to the market in force on the final session, with mid- and small-cap stocks including Ikeja Hotel Plc, SUNU Assurances Nigeria Plc and Sovereign Trust Insurance Plc attracting notable buying interest.
Trading activity also picked up significantly as investors exchanged 606.13 million shares in 53,364 deals, pushing total transaction value to N38.66bn on August 31. This represented a 29.65 per cent increase from the N29.82bn recorded in the previous session, signalling stronger market participation as investors positioned themselves for the new month.
Meanwhile, the total equity market capitalisation closed August at N157.74tn, a marginal 0.37 per cent decline from the N158.33tn recorded at the end of July. In dollar terms, however, the market value increased from $115.72bn to $118.34bn. Analysts expect the positive momentum to continue into September, particularly as investors position ahead of Nigeria’s return to Frontier Market status under FTSE Russell.
Nigeria is scheduled to regain Frontier Market classification on September 21, 2026, following improvements in foreign exchange liquidity, the clearing of dividend backlogs and the adoption of the T+1 settlement cycle. Analysts say the reclassification could attract stronger foreign portfolio flows, particularly into major banking and energy stocks, although they caution that investors should remain measured until the expected inflows materialise. With September now underway, all eyes are on whether the NGX can build on August’s late rally and extend its strong year-to-date performance.
source: punch
