NGX Gains N479bn as Market Reforms Strengthen Investor Confidence

The Nigerian Exchange (NGX) sustained its bullish momentum on Tuesday, adding a remarkable ₦479 billion to market capitalisation, as investor confidence continued to soar on the back of ongoing economic and policy reforms by the Federal Government and the Central Bank of Nigeria (CBN). The renewed optimism across sectors reflects growing confidence in the government’s macroeconomic stabilisation efforts, which have been applauded by both local and foreign investors.

Market capitalisation rose from ₦92.87 trillion to ₦93.35 trillion at the close of trading, representing a 0.52 percent gain. Similarly, the All-Share Index (ASI) advanced by 848.7 points to close at 165,492.08 points, driven largely by gains in the banking, industrial goods, and consumer goods sectors.

Analysts attributed the impressive performance to sustained foreign portfolio inflows and improved liquidity in the foreign exchange market following the CBN’s monetary tightening measures. The apex bank’s interventions, alongside fiscal reforms, have boosted market sentiment and increased demand for blue-chip stocks, especially in the financial services and manufacturing sectors.

The Head of Equity Research at Vetiva Capital, Tunde Adebayo, noted that the reforms implemented over the past months have improved transparency in the capital market and restored investor confidence. “We’re seeing renewed activity from both institutional and retail investors. The recent reforms—such as the unification of the FX rate, increased transparency in monetary policy, and improved communication from regulators—are driving confidence in the Nigerian market,” he said.

Banking stocks continued to dominate trading activities, led by significant gains in Zenith Bank, GTCO, Access Holdings, and UBA. Investors showed strong appetite for these equities following positive third-quarter earnings and expectations of improved returns from interest rate adjustments. The sector’s performance pushed the NGX Banking Index up by 2.13 percent.

The Industrial Goods sector also posted gains, buoyed by sustained investor interest in Dangote Cement, BUA Cement, and Lafarge Africa. Analysts say the sector is benefiting from government infrastructure initiatives and increased private sector investments in construction. Dangote Cement, in particular, saw heightened trading activity as investors anticipate stronger performance following the gradual stabilisation of energy prices.

In the Consumer Goods sector, stocks like Nigerian Breweries, Nestlé Nigeria, and Dangote Sugar recorded modest gains, reflecting renewed optimism about consumption growth as inflationary pressures begin to moderate. Market watchers noted that the gradual decline in inflation—now trending downward for the third consecutive month—has lifted investor sentiment around consumer-facing companies.

Total turnover on the exchange stood at 674.12 million shares valued at ₦11.3 billion, exchanged in 8,012 deals. Fidelity Bank led the activity chart with 112.8 million shares, followed by Access Holdings with 97.4 million shares and Transcorp with 82.5 million shares.

Market analysts say the rally underscores the growing resilience of Nigeria’s capital market amid global economic headwinds. The combination of policy consistency, enhanced regulatory oversight, and investor-friendly reforms has created a more stable environment for investment inflows.

Economic analyst Grace Eze of Meristem Securities observed that “the government’s economic realignment policies, including the removal of fuel subsidies, foreign exchange liberalisation, and renewed fiscal discipline, are beginning to yield positive investor sentiment. The capital market is responding to the improving macroeconomic outlook, and we expect this trend to continue in the near term.”

The NGX CEO, Temi Popoola, recently reaffirmed the Exchange’s commitment to supporting government reforms aimed at deepening Nigeria’s capital markets. He highlighted ongoing initiatives to attract more listings, enhance market liquidity, and expand the participation of domestic institutional investors. “Our focus remains on strengthening the market infrastructure and ensuring transparency to make the NGX a preferred destination for both local and international investors,” Popoola said.

Meanwhile, foreign investors have been increasing their participation, encouraged by the relative stability in the exchange rate and efforts to clear foreign exchange backlogs. The capital market is also witnessing stronger participation from pension funds and asset management firms seeking to capitalise on dividend yields and capital appreciation.

Despite the positive momentum, analysts caution that sustaining the rally will depend on continued macroeconomic stability and the government’s ability to implement reforms effectively. Challenges such as high borrowing costs, insecurity, and energy sector inefficiencies still pose risks to long-term growth.

Nonetheless, optimism remains high. “If the current policy trajectory is maintained, we could see the NGX breaking new thresholds before year-end,” said Adebayo. “There’s strong potential for the market to serve as a catalyst for Nigeria’s economic recovery.”

As trading closed for the day, investors expressed confidence that the Nigerian Exchange is on a solid path to recovery, buoyed by credible reforms, stable fiscal policies, and a more transparent regulatory environment. With ₦479 billion added in a single session, the NGX continues to stand out as one of Africa’s most promising and reform-driven markets.

 

The overall sentiment remains positive as investors anticipate sustained earnings growth, further macroeconomic stability, and increased foreign participation in the weeks ahead.