Nigerian Stocks Near Three-Week High as FTSE Decision Lifts Sentiment

• Main index rises for third straight session after 11-day rout

Nigeria’s equities market reversed some of its recent losses on Monday, with the benchmark All-Share Index rising for a third consecutive session as investors responded to FTSE Russell’s decision to clear the way for the country’s return to its frontier market index.

The All-Share Index rose by 1.20 percent to close at 244,199.4 points, its highest level in nearly three weeks, from 241,298.5 points on Friday, according to data from the Nigerian Exchange Limited (NGX).

The rally added N1.9 trillion to the market’s capitalisation in a single session, lifting it to N157.7 trillion from N155.8 trillion on Friday.

Both the index and market capitalisation closed at their highest levels since August 11.

Monday’s advance extended a three-day rebound that has helped the market recover from an 11-session losing streak that erased trillions of naira from equity values earlier in August.

The rebound followed FTSE Russell’s country classification review, which found no material settlement, operational or funding problems following Nigeria’s transition to a T+1 settlement cycle.

The clearance removes a key concern around the accessibility of Nigeria’s equities market to international investors and paves the way for the country’s return to the FTSE Frontier Market universe.

Nigeria’s reclassification is expected to raise the visibility of its capital market among global investors and could trigger fresh portfolio inflows as funds benchmarked against FTSE indexes adjust their allocations.

The market, however, remains below its August peak.

Equities market capitalisation fell from N160.42 trillion on August 10 to N154.39 trillion on August 25, reflecting the sharp sell-off that followed an extended period of profit-taking and portfolio repositioning.

Seasonal weakness, delayed bank earnings and investor positioning ahead of major corporate events, including the planned listing of the Dangote Petroleum Refinery, have also contributed to recent market volatility.

The FTSE decision now shifts investor attention to the Frontier Index Series annual indicative review files for September 2026, which are scheduled to begin publication on September 2 and are expected to reflect Nigeria’s reclassification ahead of its formal implementation.

Nigeria is also on the radar 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 interest from major index providers underscores the growing importance of Nigeria’s market accessibility, settlement infrastructure and ability to facilitate foreign investor participation.

For the NGX, the developments could strengthen Nigeria’s position within the global investment universe and deepen the capital market’s contribution to investment and economic growth.

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.