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

The Nigerian Exchange Limited (NGX) concluded August on a positive note, with the All-Share Index (ASI) rising 1.20% on the final trading day to mark the month's year-to-date gain of 56.93%. Despite profit-taking and portfolio rebalancing throughout the period, the market's strong finish helped preserve much of the year's gains following a robust rally in the first seven months of 2026.

Increased buying interest on the last trading day, driven by interest in stocks like Ikeja Hotel, SUNU Assurances, and Sovereign Trust Insurance, supported the market rebound and signaled a renewed investor appetite heading into September. Trading activity also improved, with transaction values surging 29.65% to ₦38.66 billion on August 31, up from ₦29.82 billion the previous session.

A total of 606.13 million shares were exchanged in 53,364 deals, with market breadth strengthening to 2.53x, as 43 equities rose versus 17 declining. Although equities market capitalisation closed August at ₦157.74 trillion, down about 0.37% from ₦158.33 trillion in July, its value rose to $118.34 billion from $115.72 billion in dollar terms.

The August performance followed a series of strong gains that allowed investors to lock in profits and rebalance portfolios. The market's focus shifted towards fundamentally strong, undervalued companies with prospects for further growth. David Adonri, Vice Chairman of Highcap Securities, noted that Nigeria's return to Frontier Market status on September 21 may boost investor confidence and international participation, supporting greater engagement in Nigerian equities.

With the ASI still up 56.93% year-to-date and September beginning with enhanced breadth and renewed buying interest, investors will now concentrate on corporate fundamentals, valuations, and Nigeria's potential impact as a Frontier Market.