Investors Transact N10.68tn Stocks in Seven Months on Improving Macro-economic Conditions

Investors Transact N10.68tn Stocks in Seven Months on Improving Macro-economic Conditions

On the back of stronger domestic participation, improving macroeconomic conditions and rising investor confidence, the Nigerian equities market sustained its positive run in the seven months of 2026, placing Nigeria among the world’s strongest-performing equity markets in dollar terms.

Analysis of trading numbers showed that investors transacted an estimated N10.68 trillion in worth of stocks in seven months of 2026, about 126.01per cent Year-on-Year (YoY) increase over N4.73 trillion in the comparable period of 2025.

A breakdown of trading numbers showed that domestic institutional investors transacted N6.71trillion shares during the period, 145.02 per cent YoY increase over N2.74trillion in seven months of 2025.

Conversely, retail domestic investors sold N3.97 trillion shares in seven months of 2026, up by

99.8 per cent when compared to N1.99 trillion in seven months of 2025.

According to the Nigeria Exchange Limited (NGX) Domestic and Foreign Investors Report, domestic investors have continued to dominated the Nigerian stock market transactions, attributable to reforms by capital market regulators.

But some capital market analysts attributed the performance to the National Pension Commission’s (PenCom) decision to raise equity limits for pension funds in February 2026, among other factors.

The new policy resulted to  injection of fresh liquidity into the stock market last week as the stock price of some blue-chip companies advanced significantly. PenCom on February 9, 2026, revised investment limits for ordinary shares in RSA Funds I, II, III, and VI-Active.

PenCom had amended Section 9 of its investment regulations, increasing equity allocation caps across multiple Retirement Savings Account (RSA) fund classes: RSA Fund I moved from 30 per cent to 35 per cent; RSA Fund II from 25 per cent to 33 per cent; RSA Fund III from 10 per cent to 15 per cent; while RSA Fund VI (Active) from 25 per cent to 33 per cent.

Investors on the Nigerian stock market recorded strong returns in the seven months of 2026, with market capitalisation gaining N58.97 trillion in seven months  of 2026 despite volatility.

As at the close of trading activities July 31, 2026, the market capitalisation of listed stocks closed for trading at N158.326 trillion, representing an increase of  N58.9 trillion or 59.32 per cent

from  N99.376 trillion it closed for trading in 2025.

Of the N158.326 trillion market capitalisation,  Airtel Africa Plc and seven other blue chip stocks are controlling 63.98per cent or N101.29 trillion of the Nigerian stock market.

The gains in seven months of 2026 mark one of the strongest performances in recent years for the NGX, driven largely by price appreciation in banking, consumer goods, industrial and oil & gas stocks.

Market analysts attributed the rally to improved corporate earnings expectations, high yields on fixed income assets that drew liquidity into the market, and investor positioning ahead of H2

2026 earnings season.

However, the total transactions by both domestic and foreign investors stood at N11.98 trillion in seven months of 2026, representing an increase of 99.3 per cent from N6.01 trillion in seven months of 2025.

The report revealed that foreign investors in seven months of 2026 transacted N1.29 trillion in the Nigerian stock market,  about 0.9 per cent increase over N1.28 trillion reported in seven months of 2025.

According to the report, foreign investors inflow stood at N513.36 billion in seven months from N609.73 billion in seven months of 2025, while  outflow moved from N671.56 billion in seven months of 2025 to N779.43 billion in seven months of 2026.

Amid transacting N11.98 trillion in seven months of 2026, the proportion of domestic investors surged to 89.21 per cent from 78.67 per cent in seven months of 2025, while  foreign investors dropped to 10.79 per cent in seven months of 2026 from  21.33per cent in seven months of

2025.

The report revealed that over a 19 year period, domestic transactions increased significantly by

160.83 per cent from N3.556 trillion in 2007 to N9.274 trillion in 2025; whilst foreign transactions also increased significantly by 329.87 per cent from N0.6156 trillion to N2.6475 trillion over the same period.

“Total domestic transactions accounted for about 78 per cent of the total transactions carried out in 2025, whilst foreign transactions accounted for about 22 per cent of the total transactions in the same period.

“As at 31 July 2026, year-to-date domestic transactions amounted to approximately N10.6834 trillion, representing 89.21per cent of total market transactions, whilst foreign transactions amounted to approximately N1.2928 trillion, accounting for 10.79 per cent,” the report added.

Speaking, at Capital Market Review and Outlook for Second Half of 2026 over the weekend, the Managing Director of Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, said the Nigeria’s stock market growth was driven predominantly by domestic capital rather than a resurgence in foreign portfolio investment, Aig-Imoukhuede said the performance of the

Nigerian Exchange (NGX) reflected stronger domestic participation, improving macroeconomic conditions and rising investor confidence, rather than significant foreign capital inflows.

He said the performance placed Nigeria among the world’s strongest-performing equity markets in dollar terms, according to Bloomberg data.

However, Aig-Imoukhuede cautioned that the scale of the rally should prompt investors to assess whether the performance represented a sustainable structural recovery or a temporary market re- rating.

“These numbers are certainly worth celebrating,” he said, noting that the rally reflected a strengthening domestic capital base, improving macroeconomic stability and growing opportunities for long-term investors.

He said the changing composition of market participation was one of the most significant features of the 2026 rally.

According to him, domestic investors have become the dominant force behind the market’s

performance, even as foreign participation has declined.

Aig-Imoukhuede, however, said the decline in foreign participation should not be interpreted as a complete withdrawal of international investors from Nigeria.

Aig-Imoukhuede attributed part of the foreign investors’ positioning to the attractiveness of

short-dated Nigerian government securities, which offered yields close to 20 per cent.

“From a pure risk-adjusted perspective, that allocation decision was understandable,” he said.

He identified domestic institutional investors, particularly pension funds, as important contributors to the equities rally following changes to investment thresholds by the National Pension Commission (PenCom).

He rejected concerns that increased domestic participation represented a weakness for the market, arguing that a market supported by domestic savings could become more resilient over time.

“If anything, this is a sign of market maturity. Markets become more resilient when they are

supported by savings rather than speculation,” he said.

Despite the strong performance, he acknowledged that the rally had been relatively narrow and that the market would need broader participation and stronger fundamentals to sustain the gains.

He said the key question for the second half of 2026 was therefore not whether the rally would simply continue, but whether Nigeria could attract a new wave of international capital.

According to him, the second half of the year could represent a potential re-entry window for foreign investors as conditions around market classification, foreign-exchange liquidity, reserves and corporate earnings continue to improve.

Aig-Imoukhuede said international index providers were increasingly paying attention to

Nigeria’s market.

He noted that FTSE Russell was reviewing Nigeria’s position within its Frontier Market Index framework, while S&P Dow Jones Indices had placed Nigeria on a watchlist for possible reclassification from standalone to frontier-market status.

Although neither outcome was guaranteed, he said any change in Nigeria’s classification could

have significant implications for international capital flows, particularly passive investment.

“Global capital follows confidence, but domestic capital trades on it,” he said.

He also pointed to improvements in Nigeria’s foreign-exchange market as a factor that could strengthen the investment case for foreign investors.

Source: https://www.thisdaylive.com/2026/08/24/investors-transact-n10-68tn-stocks-in-seven- months-on-improving-macro-economic-conditions/