Published by Osasere Edomwonyi Ikpoba
The Nigerian equities market closed the first trading week of September on a resounding positive note, as sustained buying interest across key sectors propelled the market capitalisation higher by N405 billion. Trading activities on the floor of the Nigerian Exchange Limited on Friday maintained a growth trajectory, with the market capitalisation of listed equities increasing by 0.25 per cent to settle at N159.558 trillion, up from N159.153 trillion recorded the previous day.
The benchmark NGX All-Share Index also appreciated significantly, gaining 604.22 basis points to close the week at 246,992.44 points, compared with 246,388.22 points at the close of Thursday's session. This represents a weekly gain of 2.36 per cent from the previous week's closing figure of 241,298.47 points, underscoring the strong bullish momentum that characterised the market throughout the period. The week's performance lifted the market's year-to-date return to an impressive 58.72 per cent, reflecting the sustained confidence investors have continued to repose in Nigerian equities despite prevailing macroeconomic headwinds.
The positive performance was broad-based, with most market indices recording gains. The NGX Oil and Gas Index led the rally with a remarkable 9.10 per cent weekly gain, driven by renewed investor interest in energy stocks amid global supply concerns and the ongoing impact of the Iran war on crude oil prices. The Commodity Index followed with a 5.99 per cent appreciation, while the Insurance Index rose by 3.85 per cent. The Premium Index and Banking Index also recorded solid gains of 3.73 per cent and 3.58 per cent, respectively. However, the Industrial Goods Index and Sovereign Bond Index bucked the trend, declining by 0.35 per cent and 0.36 per cent, respectively.
Trading activity accelerated significantly during the review week, reflecting heightened investor participation. Investors exchanged 4.360 billion shares worth N210.331 billion across 223,284 deals, compared with 2.507 billion shares valued at N123.223 billion in 173,561 deals recorded in the preceding week. This represents a 70.7 per cent increase in turnover value and a 73.9 per cent rise in volume week-on-week, pointing to sustained investor activity at the start of the new month.
The Financial Services sector dominated trading activity, accounting for 3.580 billion shares worth N88.635 billion across 99,488 deals. The sector contributed 82.10 per cent of total equity turnover volume and 42.14 per cent of value, underscoring its position as the most active segment of the market. Consumer Goods and Services followed with 188.039 million shares and 142.292 million shares, respectively. Fortis Global Insurance, United Bank for Africa, and Access Holdings emerged as the three most actively traded equities by volume, jointly accounting for 2.287 billion shares worth N35.232 billion, representing 52.46 per cent of total market volume during the week.
Market breadth strengthened considerably, reflecting broader participation in the week's rally. Fifty-six equities appreciated in price, more than double the 24 gainers recorded in the previous week, while decliners fell to 35 from 55. Fifty-six equities closed unchanged. Royal Exchange led the gainers' chart with a 25 per cent increase, followed by Champion Breweries at 20.10 per cent and Nigerian Breweries at 18.80 per cent. Coronation Insurance gained 17.07 per cent, while McNichols Consolidated advanced 16.67 per cent.
The bullish run was further supported by strong performances from heavyweight stocks. Large-cap stocks drove the Nigerian Exchange back into positive territory on Thursday after strong gains in Seplat Energy Plc and other heavyweight counters outweighed widespread selling pressure, increasing equity market capitalisation by approximately N238 billion. The NGX All-Share Index had advanced from 246,019.17 to 246,388.22, while equity market capitalisation increased from N158.915 trillion. Tuesday's session had also seen the market extend its bullish run, gaining N1.216 trillion on increased demand for blue-chip stocks. The market capitalisation rose by 0.77 per cent to close at N158.955 trillion, while the All-Share Index increased by 1,883.24 points.
The week's positive performance reflects growing investor optimism, supported by improving macroeconomic fundamentals, including GDP growth of 4.43 per cent in the second quarter of 2026 and declining inflation. President Bola Tinubu's recent announcement of an ambitious vision to transform Nigeria into a $1 trillion economy by 2030, coupled with the launch of the African Credit Rating Agency scheduled for October 7, has further boosted sentiment. The successful listing of the Dangote Refinery, with shares priced at N525 following SEC approval of its N2.15 trillion initial public offering, has also injected fresh energy into the capital market.
The first trading week of September has built on the market's positive close to August, with the combination of higher turnover, stronger market breadth, and gains across most indices pointing to sustained investor activity. As Nigeria approaches the 2027 general elections, the equities market appears to be positioning itself for continued growth, with investors betting on the administration's reform agenda and the long-term potential of the Nigerian economy.
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