Nigeria’s equities market added N5.37 trillion in September, reversing the N587 billion loss recorded in August as lower interest rates, relative naira stability and improved investor sentiment supported a broad market recovery.
Market capitalisation rose 3.40 per cent from N157.74 trillion to N163.10 trillion, while the All-Share Index gained 2.87 per cent to close at 251,211.67 points.
The rebound came despite a 33.24 per cent decline in trading volume to 17.94 billion shares. However, transaction value rose 43.01 per cent to N907.84 billion, suggesting that September’s recovery was accompanied by higher-value positioning rather than a broad increase in trading volume.
David Adonri, Vice President of Highcap Securities Ltd., linked the rally to moderating inflation, foreign exchange stability and lower benchmark interest rates.
“The massive reduction in benchmark interest rates coupled with moderating inflation and a strengthening naira, created an environment that enabled financial assets to move into equities,” Adonri said.
The market also benefited from Nigeria’s restoration to FTSE Russell’s Frontier Market status, while the easing of investor repositioning for the Dangote Refinery and Petrochemicals IPO reduced selling pressure seen in August.
Large-cap stocks drove part of the recovery. Seplat Energy rose from N12,320.60 to N16,000, First HoldCo gained from N145 to N159.90, while Zenith Bank increased from N127.40 to N134.
However, the recovery was not uniform. UBA fell from N47.35 to N45.45, while Access Holdings declined from N32.10 to N30.40.
