FTSE Reclassification Lifts NGX ASI by 45.05% YtD, Ranked Top 2 in Africa

Kayode Tokede

The Nigerian Exchange Limited (NGX) has emerged the second best performing bourse in Africa buoyed by the recent FTSE Russell reclassification of Nigeria from unclassified to Frontier market status.

As of April 24, 2026, the major market indicator  of Nigeria’s stock market, NGX All-Share has appreciated by 45.05 per cent in its Year-till-Date (YtD) growth, behind the GSE  Composite Index that closed at  69.59 per cent YtD.

The GSE  Composite Index  is heavily influenced by large-cap names, especially telecom and financial stocks.  Also, the GSE  Composite Index’ so far in 2026 has witnessed improving investor confidence & sector diversification and market cap expansion rather than trading volume

Data obtained by THISDAY revealed that Dar es Salaam All Share Index (DAR-ASI) came third with a 39.77 per cent YtD growth, followed by Zimbabwe Stock Exchange (ZSE) All Share Index that closed at  28.63 per cent  YtD.  

Major markets such as Tunindex  and JSE All Share saw a 17.50 per cent and 0.63 per cent  YtD performance as of April 24, 2026, respectively. 

Top on the decline performance include  Malawi Stock Exchange All Share Index that has fallen by -12.05 per cent YtD, followed by Stock Exchange of Mauritius (SEM) All Share Index (SEM-ASI) that dipped by per cent in its -3.26 YtD performance as of April 24, 2026. 

For the Nigerian stock market, analysts have hinted of recent foreign investors inflow influenced by the FTSE Russell reclassification, the National Pension Commission (PenCom) Revised Regulation on Investment of Pension Fund Assets, the just concluded banking sector recapitalisation exercise policy of the CBN, impressive 2025 financial corporate earnings by listed companies, and the cut in fixed income instrument rates as driving investors confidence. 

Also, inflation rate, according to the National Bureau of Statistics (NBS) stood at 15.38 per cent as of March 2025 from 27.35 per cent March 2025, while MPR has dropped to 26.50 per cent as of April 2026 from 27.50 per cent April 2025.

Consequently, the market capitalisation has appreciated significantly by N45.96 trillion or 46.25 per cent YtD to close at N145.334 trillion as of April 24, 2026 from N99.376 trillion it closed for trading in 2025.  

As global investors increasingly prioritise markets with strong infrastructure, transparency, and accessibility, Nigeria’s re-entry into the FTSE Frontier Market universe underscores the critical role of market infrastructure in enabling capital formation and connecting local opportunities to global capital.

Analysts at Cordros Research in a report stated that Nigeria’s return to Frontier Market status is expected to improve market flow dynamics, with inflows projected in the conservative range of $840.00 million to $1.04 billion (N1.15 trillion to N1.42 trillion), underpinned by benchmark-driven rebalancing and incremental discretionary allocations.

“Price discovery should improve further in the market’s liquid leadership cohort: The second-order implication is on price discovery, particularly at the large-cap, liquid end of the market,”  the firm explained.

The CBN recently implemented significant reforms in the foreign exchange market aimed at enhancing transparency, compliance, and market stability.

The reforms are part of the CBN’s broader strategy to create a fairer, more stable FX market and support economic growth through better monetary policies. 

With the foreign investors increasing participation in the stock market over naira policies of the current administration, capital raising exercise policy of CBN, among other reforms, the likes of Aradel Holdings Plc, Seplat Energy Plc, First Holdco Plc, BUA Foods Plc, Dangote Cement Plc, Guaranty Trust Holding Company  Plc, Zenith Bank Plc, among others have  appreciated in stock prices  significantly.

Investors’ demand for Aradel Holdings and Seplat Energy  has  lifted the NGX Oil & Gas Index to 99.65per cent YtD, making it the best performing index on the NGX. 

Commenting on the stock market performance, the Vice President, Highcap Securities Limited, Mr. David Adnori stated, “Trading on the Exchange this year is buoyed by renewed buying interest after a series of reforms that has attracted foreign investors amid impressive corporate scorecards by listed firms.”

The MD/CEO, Globalview Capital Limited. Mr. Aruna Kebira  attributed the bullish momentum recorded so far in 2026 to the strong fundamentals of listed companies, particularly in the manufacturing sector, noting that improved stability in the foreign exchange market and a gradual decline in inflation have further strengthened market sentiment.

He said current government policies have continued to reinforce a positive investor outlook, driving increased participation and boosting demand for manufacturing stocks.

Kebira , however, observed that the banking sector is yet to attract significant investor interest, as market participants remain cautious due to the CBN’s policies on dividend payments.

He added that the attractive return on investment in equities has remained a key factor drawing investors into the market.