Nigeria Stocks Rebound as Investors Digest FTSE Russell’s Reclassification
- Benchmark gauge rises to near two-week high after 11-day rout
Nigeria’s equities market rebounded for the second straight day on Friday after FTSE Russell cleared the way for the country’s return to the global Frontier Market universe.
The All-Share Index, the benchmark for Nigerian equities, rose slightly by 0.91 percent to close at 241,298.5 points, up from 239,156.1 points on Thursday, according to data from the Nigerian Exchange Limited (NGX).
The gain lifted the market capitalisation to N155.8 trillion, from N154.4 trillion a day earlier.
Both the index and market capitalisation closed at their highest levels since August 18.
The rebound came after global index provider FTSE Russell announced the outcome of its country classification review, removing concerns that Nigeria’s move to a shorter T+1 settlement cycle could undermine its accessibility to international investors.
Africa’s most populous nation’s return to the Frontier Market universe is expected to improve the country’s visibility among global investors and potentially support fresh portfolio inflows as funds benchmarked against FTSE indexes adjust their allocations.
The development also provides some relief for the Nigerian market, which had suffered a sharp sell-off in recent weeks.
The market capitalisation of equities on the NGX fell from N160.42 trillion on August 10 to N154.39 trillion on Monday, as investors took profits and repositioned their portfolios ahead of major corporate events.
Seasonal weakness, delayed bank earnings and expectations surrounding the planned listing of the Dangote Petroleum Refinery have also contributed to the recent volatility, analysts said.
Attention will now turn to FTSE Russell’s Frontier Index Series annual indicative review files for September 2026. The files, scheduled to begin publication on September 2, are expected to reflect Nigeria’s reclassification ahead of its formal implementation.
Nigeria is also attracting the attention of another major global index provider. S&P Dow Jones Indices has placed the country on its Watch List for possible reclassification to Frontier Market status as part of its 2027 Country Classification Annual Review.
The development highlights the growing importance of the country’s s market accessibility, settlement infrastructure and foreign-investor participation in determining how global index providers classify the country.
NGX Group said it would continue working with the Federal Government, the Securities and Exchange Commission, market operators, investors and global index providers to strengthen Nigeria’s position in the international financial system and expand the capital market’s contribution to investment and economic growth.
