NGX closes August with 56.93% YTD gain as buying interest picks up

Nigerian Exchange Limited (NGX) ended August on a positive note, with the All-Share Index (ASI) gaining 1.20 per cent on the final trading day to close the month with a year-to-date return of 56.93 per cent, despite profit-taking and portfolio rebalancing that characterised trading during the period.

The strong finish moderated the month’s decline to about 0.44 per cent, leaving much of the market’s gains for the year intact after a strong rally in the first seven months of 2026.

Buying interest strengthened on the final trading day, with demand for stocks including Ikeja Hotel, SUNU Assurances and Sovereign Trust Insurance supporting the market’s rebound and pointing to renewed investor appetite heading into September.

Trading activity also improved, with the value of transactions rising 29.65 per cent to ₦38.66 billion on August 31, from ₦29.82 billion in the previous session. A total of 606.13 million shares were exchanged in 53,364 deals.

Market breadth strengthened to 2.53x, with 43 equities advancing against 17 decliners, reflecting broader buying interest across the market.

Equities market capitalisation closed August at ₦157.74 trillion, compared with ₦158.33 trillion at the end of July, representing a modest decline of about 0.37 per cent. In dollar terms, however, market capitalisation increased to $118.34 billion from $115.72 billion over the same period.

The August performance followed months of strong gains that created room for investors to lock in profits and rebalance portfolios. Rather than a broad retreat from equities, trading during the month was characterised by profit-taking alongside selective positioning in stocks considered attractive on earnings and valuation.

The market’s strong year-to-date performance has also sharpened investor focus on fundamentals, with attention increasingly shifting towards companies with resilient earnings, attractive valuations and prospects for further growth.

David Adonri, Vice Chairman of Highcap Securities, said the market could sustain positive momentum into September, with investors likely to remain focused on fundamentally strong and relatively undervalued stocks.

“Nigeria’s return to Frontier Market status should provide an additional boost to investor confidence and international participation. With investors becoming more selective, opportunities will increasingly be driven by strong fundamentals and attractive valuations,” Adonri said.

The outlook comes as Nigeria prepares to return to Frontier Market status on September 21, a development expected to strengthen the country’s visibility among international investors and potentially support greater participation in Nigerian equities.

With the ASI still up 56.93 per cent year-to-date and the market ending August with stronger breadth and renewed buying interest, investors head into September with attention turning to corporate fundamentals, valuations and the potential impact of Nigeria’s return to the global Frontier Market universe.