Nigerian Stocks Rebound Ahead of FTSE Inclusion

Nigerian stocks experienced a significant recovery towards the end of the month, reversing a two-week decline characterized by volatility in Open Market Operations (OMO). The All-Share Index (ASI) increased by almost 81–90 basis points in late-month trading, with investor funds gaining over N1.3 trillion within a few days.

This upward movement reflects market resilience as investors engaged in profit-taking. The inclusion of Nigerian assets in the FTSE index on September 21 is expected to attract foreign portfolio investors, prompting a re-indexing of portfolios.

Market experts anticipate increased trading activity as traders seek short-term gains, particularly in heavily weighted sectors such as tier-1 banks and oil and gas. The NGX ASI rebounded from a crucial medium-term average, preventing further sell-offs, with oil and gas leading the recovery.

The market is currently trading near the psychological 240,000 marker, which has shifted from resistance to immediate tactical support.