The Nigerian equities market started to regain momentum as investors gained N1.29 trillion in market capitalisation last week, with renewed buying interest in banking and oil and gas stocks pushing the market higher. The market capitalisation rose to N155.83 trillion, while the NGX All-Share Index gained 0.81 per cent week-on-week to close at 241,298.47 points.
The latest rally also lifted the Nigerian stock market’s year-to-date return to 55.06 per cent, although the gains were not spread evenly across the market. Investors largely targeted selected large- and mid-cap stocks, particularly in the banking and oil and gas sectors, while overall market participation weakened during the week.
A major boost to investor sentiment came from FTSE Russell’s confirmation that Nigeria will be reclassified from unclassified to frontier market status from September 21, 2026. The move is expected to improve Nigeria’s visibility among international investors, strengthen confidence in the local market and potentially attract fresh foreign interest as the country formally returns to the global frontier market universe.
However, the week’s performance came with some warning signs. Fifty-five stocks declined compared with just 24 gainers, producing a weak breadth ratio of 0.44 times. Trading activity also fell, with deals dropping 6.92 per cent, while trading volume and value declined by 59.84 per cent and 21.84 per cent respectively. In total, 2.51 billion shares worth N123.37 billion changed hands in 173,848 deals.
The oil and gas sector led the gainers, climbing 4.54 per cent, helped by a 10 per cent rise in Seplat Energy. Consumer goods stocks gained 2.93 per cent, while banking stocks advanced 2.85 per cent, with First HoldCo, Access Holdings and United Bank for Africa among notable performers. On the other hand, insurance stocks fell 1.27 per cent, while industrial goods declined 0.15 per cent, showing that investors remain selective and are favouring stocks with strong fundamentals and liquidity.
source: The guardian
