MARKET NEWS

By Jide Ajia

The Nigerian equities market sustained its upward momentum as investor sentiment remained firmly bullish, driven by expectations surrounding the market’s formal return to international benchmark indices. The benchmark Nigerian Exchange Limited All-Share Index advanced by 2.36 per cent week-on-week to close at 246,992.42 points, extending the local bourse’s year-to-date return to 58.72 per cent.

Financial analysts at Coronation Asset Management project that this positive market trajectory will persist into upcoming trading sessions, supported by structural institutional demand.

According to the investment research firm, the anticipated reclassification of Nigerian equities by index provider, FTSE Russell, back into its Frontier Market universe on 21 September is serving as a primary operational catalyst, boosting risk appetite and driving positioning across fundamentally solid stocks.

Commenting on the market outlook, analysts at Coronation Asset Management noted that institutional positioning ahead of the global index adjustment continues to bolster market breadth and investor liquidity.

“We expect the positive market bias to persist, with the upcoming FTSE Russell reclassification potentially providing an additional catalyst for sentiment, particularly in affected stocks ahead of its September 21 effective date,” the firm stated in its weekly market update.

The Coronation Research Model Equity Portfolio delivered a 2.03 per cent weekly gain, elevating its year-to-date return to 64.01 per cent and maintaining a 529-basis-point outperformance relative to the broader index.

The portfolio’s expansion during the five-day trading period was anchored by substantial price surges in key consumer goods and energy holdings, led by Nigerian Breweries with an 18.80 per cent gain, Seplat Energy with 10.00 per cent, and Aradel Holdings with 8.51 per cent. These double-digit advancements effectively offset localised profit-taking in stocks such as Beta Glass and NASCON Allied Industries.

The impending upgrade marks the end of a three-year exclusion cycle that began in September 2023, when FTSE Russell downgraded Nigeria to Unclassified Market status due to severe foreign exchange illiquidity and chronic delays in foreign capital repatriation.

Recent foreign exchange structural reforms, cleared dollar backlogs, and the smooth transition to a T+1 settlement cycle on 1 June, 2026, cleared the final regulatory hurdles for the market’s readmission.

Ahead of the 21 September effective date, FTSE Russell released its September 2026 index review, officially clearing 31 Nigerian equities across large, mid, and small-cap categories for inclusion.

Ten major stocks were designated as “Newly Eligible” large-cap counters, including Aradel Holdings, Dangote Cement, First HoldCo, Guaranty Trust Holding Company, MTN Nigeria, Nestlé Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings, and Zenith Bank.

Coronation Asset Management expects buying momentum to remain concentrated in these liquid counters as global portfolio managers realign index-tracking funds to capture renewed offshore inflows.