Equities market appreciates by N1.36trn amid Nigeria’s FTSE frontier market reclassification

The equities market section of the Nigerian Exchange Limited (NGX) closed last week on a positive note once again, gaining N1.36 trillion as FTSE Russell confirmed Nigeria’s reclassification from unclassified back to Frontier Market status in its interim review.

The gains in a few key stocks lifted market capitalisation by N1.36 trillion or 1.05per cent to close the week at N131.17 trillion from N129.81 trillion it opened for trading. 

The benchmark NGX All-Share Index (ASI) edged up 1.03 per cent week-on-week to close at 203,770.42 points from 201,698.89 basis points with the Year-to-Date (YtD) return improved to 30.95 per cent, reflecting sustained positive momentum.

However, market breadth was negative, with 25 stocks gaining against 54 decliners, indicating that despite the overall market growth, more stocks actually recorded losses during the week. Trans-Nationwide Express led the gainers table by 32.75 per cent to close at N3.77, per share. Nigerian Exchange Group followed with a gain of 13.94 per cent to close at N188.00, while Guaranty Trust Holding Company (GTCO) went up by 10.66 per cent to close to N135.00, per share.

On the other side, DAAR Communications led the decliners table by 21.47 per cent to close at N1.50, per share. RT Briscoe followed with a loss of 20.00 per cent to close at N8.40, while DEAP Capital Management & Trust declined by 16.81 per cent to close at N5.00, per share.

Overall, a total turnover of 3.361 billion shares worth N151.948 billion in 229,442 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.856 billion shares valued at N113.597 billion that exchanged hands previous week in 215,287 deals.

The Financial Services Industry led the activity chart with 2.303 billion shares valued at N90.467 billion traded in 98,175 deals: contributing 68.54 per cent and 59.54 per cent to the total equity turnover volume and value respectively.

The Services Industry followed with 264.146 million shares worth N1.977 billion in 12,638 deals, while ICT Industry traded a turnover of 214.578 million shares worth N9.791 billion in 28,183 deals.

Trading in the top equities, Access Holdings, Wema Bank and GTCO accounted for 1.124 billion shares worth N49.451 billion in 27,886 deals, contributing 33.45 per cent and 32.54 per cent to the total equity turnover volume and value respectively.

The stock market heads into this week trading with optimism, with analysts projecting extended gains on the back of solid earnings releases and the strategic lift from Nigeria’s FTSE Frontier Market reclassification.

The combination of improved market infrastructure, positive earnings surprises, and anticipated foreign inflows is seen sustaining risk appetite, positioning the NGX to close the week higher barring any sudden macro shocks.

Looking ahead, Afrinvest Limited said, “we expect the market to maintain a bullish bias, driven by investor positioning for dividend payouts and Q1:2026 earnings releases. We also expect market sentiment to be supported by continued positive reactions to the reclassification of Nigeria’s market from unclassified status to Frontier Market.”

Also, analysts at Cordros Research in a report noted that investors are likely to trade with a more cautious bias. 

“Focus will shift to macro data, particularly the March inflation print, where we expect headline inflation to edge up to 15.40%. At the same time, early positioning ahead of Q1 earnings is likely to pick up, which should drive selective participation across stocks,” they added. 

Cowry Assets Management Limited stated that “the Nigerian equities market is expected to maintain its positive momentum this week, supported by sustained buying interest in fundamentally strong and highly liquid stocks. Improved trading activity and rising investor participation may continue to underpin market performance.

“However, the negative market breadth suggests underlying fragility, as profit-taking and sell-offs in a broader range of stocks could temper gains. Investors are therefore likely to remain selective, focusing on value opportunities and earnings-driven plays, while monitoring macroeconomic developments and liquidity conditions for clearer market direction.”