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Nigeria’s return to FTSE Russell’s Frontier Market status coincided with heavier trading in Zenith Bank, GTCO and FirstHoldCo on Monday.
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Zenith Bank traded 77.07 million shares worth N9.9bn, more than 3.5 times its 30-day average volume.
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The NGX All-Share Index rose 0.14 percent to a record 250,156.80 points, while total deals jumped 54.86 percent.
September 22, (THEWILL) – Foreign institutional investors returned to Nigerian equities on Monday as Nigeria officially regained its FTSE Russell Frontier Market status, with major banking stocks attracting some of the strongest trading activity.
The NGX All-Share Index rose 352.24 points, or 0.14 percent, to 250,156.80 points from 249,804.56 points on Friday, while market capitalisation increased from ₦162.16 trillion to ₦162.39 trillion.
The modest market-wide gain contrasted with a sharp increase in trading activity, suggesting that investors were positioning selectively rather than triggering a broad-based rally.
Banks Take Centre Stage
Zenith Bank Plc recorded the highest trading activity among the major beneficiaries, with 77.07 million shares changing hands, more than 3.5 times its 30-day average daily volume of 21.52 million shares. The transactions were worth ₦9.9 billion, while the stock gained 0.2 percent to ₦128.60.
Guaranty Trust Holding Company Plc, popularly known as GTCO, gained 3.9 percent to ₦133.90 after 25.85 million shares valued at ₦3.41 billion were traded.
FirstHoldCo Plc recorded ₦1.87 billion in turnover from 12.18 million shares, although its share price remained unchanged at ₦160.
Across the 31 Nigerian equities included in the broader FTSE Frontier Index Series, 13 advanced, nine declined and nine closed unchanged. NASCON Allied Industries gained 10 percent to ₦176, while Transnational Corporation rose 6.78 percent to ₦37.
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Nigeria’s reclassification from “Unclassified” to Frontier Market status took effect at the open on September 21, after FTSE Russell confirmed the country met the required market-accessibility criteria.
Nigeria had been moved to Unclassified status in September 2023 after persistent problems with foreign-exchange transactions and the repatriation of international investors’ capital. FTSE Russell subsequently placed Nigeria on its Watch List after improvements in FX liquidity and capital repatriation.
The re-entry followed further assessment of market infrastructure, including the transition from T+2 to T+1 settlement in June. FTSE Russell said its assessment found no material settlement, operational or funding issues that would prevent the reclassification.
FTSE Russell’s broader Frontier Index Series covers large-, mid- and small-cap equities and is designed both as a performance benchmark and as a basis for index-tracking products.
Coronation research analysts said the reclassification could support additional demand from funds tracking relevant FTSE Russell indices, potentially providing a near-term catalyst for Nigerian equities.
Meristem Securities analysts similarly expect the development to increase foreign demand for Nigerian assets, including government securities, while warning that greater foreign participation could also make the market more sensitive to global risk sentiment and exchange-rate movements.
The Nigerian Exchange Group has described the reclassification as an opportunity to reconnect Nigerian companies with global pools of capital.
Temi Popoola, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, said the reclassification was “a gateway” to greater international attention, adding that the focus should now shift towards converting that visibility into deeper capital formation and broader market participation.
The immediate market response remains measured. Monday’s 0.14 percent rise in the All-Share Index, alongside the 54.86 percent jump in the number of deals to 68,507, indicates increased participation but not yet a broad-based foreign-led rally.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
