Market eyes bull run on FTSE, easing inflation

The Nigerian Exchange demonstrated significant resilience and growth during the trading week ended 10 April 2026, despite a shortened four-day session following the Easter public holiday.

The market was characterised by a surge in investor confidence, propelled by the landmark announcement that FTSE Russell had officially reclassified Nigeria from “Unclassified” to “Frontier Market” status.

This reclassification, effective September 2026, reflects improved foreign exchange liquidity and the resolution of previous repatriation bottlenecks. Combined with easing inflationary pressures and a recent 50bps cut to the Monetary Policy Rate, the All-Share Index appreciated by 1.03 per cent to close at an all-time high of 203,770.43 points, while total market capitalisation climbed to N131.166tn.

Activity levels accelerated, with a total turnover of 3.361 billion shares valued at N151.948bn across 229,442 deals. This represented a substantial increase from the 2.856 billion shares worth N113.597bn recorded in the preceding week.

The Financial Services Industry maintained its dominant position on the activity chart, accounting for 68.54 per cent of the total equity turnover volume. Within this sector, the top three equities, including Access Holdings Plc, Wema Bank Plc, and Guaranty Trust Holding Company Plc, were the primary drivers of liquidity, jointly contributing over 32 per cent of the total market value.

While most indices finished the week in the green, the Insurance and Growth indices bucked the trend, recording depreciations of 3.64 per cent and 1.82 per cent, respectively.

The corporate landscape also witnessed significant structural changes, headlined by Access Holdings Plc listing an additional 1.057 billion ordinary shares on the Daily Official List following a successful private placement.

This capital raise, which was over 53 per cent subscribed at N20.25 per share, increased the company’s total issued shares to 54.37 billion. Conversely, the Exchange exercised its regulatory oversight by delisting DN Tyre and Rubber Plc and Greif Nigeria Plc on 9 April 2026.

The regulatory body cited persistent operations below listing standards and a lack of suitability for continued public trading as the primary grounds for the delisting, underscoring a commitment to market integrity.

Looking forward, the fundamental outlook for the Nigerian market remains decidedly bullish for the remainder of 2026. Analysts expect the FTSE upgrade to act as a catalyst for increased foreign portfolio inflows, which reached N1.40tn in 2025 and are projected to grow further.

This influx of capital is expected to strengthen foreign reserves and stabilise the naira, creating a virtuous cycle for equity valuations. With the market already boasting a 30.56 per cent year-to-date return, the combination of strong corporate earnings, attractive dividend yields, and a more favourable macroeconomic environment suggests that the 2026 bull run is well-positioned for sustained momentum.

Commenting on the development, the Group Managing Director/Chief Executive Officer of Nigerian Exchange Group Plc, Temi Popoola, said, “The gains we are seeing today are the direct result of deliberate investments in our trading systems and a commitment to global best practices in market oversight.”

The reclassification is also being viewed as a validation of the Central Bank of Nigeria’s recent efforts to stabilise the naira and harmonise the exchange rate windows. By reducing the “bottlenecks” that previously trapped foreign capital, Nigeria has met the stringent criteria required by global index providers.