NGX hits record N162trn ahead of FTSE Frontier Market return

Nigeria’s equities market capitalisation crossed the N162 trillion mark for the first time, closing at a record N162.16 trillion on Friday as the NGX All-Share Index (ASI) climbed 1.42 percent to a new high of 249,804.56 points. The market value rose by N2.27 trillion from Thursday’s N159.89 trillion, surpassing the previous record of N161.8 trillion reached on May 13. The latest milestone comes just days before Nigeria’s return to FTSE Russell’s Frontier Market classification, scheduled to take effect at the opening of trading on September 21. FTSE Russell confirmed the reclassification in August following its assessment of improvements in foreign exchange liquidity, capital repatriation and market accessibility. The Friday rally was supported by broad participation, although trading volume moderated. Investors exchanged about 526 million shares in 44,239 deals, compared with 1.1 billion shares in 54,026 deals in the previous session. Read also: NGX active retail investors grow 13-fold to 2.7m in 3 years Market breadth also remained positive, with 40 stocks gaining, 86 unchanged and 26 declining, indicating that the advance extended beyond a handful of large-cap stocks. Large-cap stocks provided significant support for the index. MTN Nigeria rose 9.20 percent to N890, adding N75 to its share price, while First HoldCo</a gained 8.11 percent to N160, also hitting a record market capitalization. Wema Bank advanced 9.03 percent to N32. MTN Nigeria’s strong move came on 3.77 million shares traded, with the telecoms company closing near its 52-week high of N915. NGX data showed its market capitalisation at about N18.69 trillion at Friday’s close. C&I Leasing and FTG Insurance led the gainers, each rising 10 percent to N5.50 and N1.65 respectively, while Mutual Benefits Assurance gained 9.09 percent to N3.60. At the other end, Transcorp Power was the biggest loser, falling 9.96 percent to N178. Cadbury Nigeria declined 9.32 percent to N53, while Omatek Ventures shed 8.40 percent to N1.20. Sovereign Trust Insurance fell 6.78 percent to N2.20. Read also: FTSE Russell index stocks boost early trading rally on NGX The day’s trading was concentrated in Banking stocks. Zenith Bank recorded 30.72 million shares traded, while First HoldCo recorded 23.80 million. Sterling Financial Holdings led Main Board activity with 41.90 million shares, followed by Wema Bank with 22.27 million. The record close adds to the momentum in Nigeria’s capital market as the country prepares to regain Frontier Market status and as major transactions, including the planned Dangote Refinery IPO, bring fresh attention to the domestic exchange. The refinery’s $1.6 billion offering is expected to begin trading on the NGX in November. Join BusinessDay whatsapp Channel, to stay up to date Open In Whatsapp