NGX Rebounds, Investors Gain N30bn as SEC Raises Capital Requirements

|By Babatunji Wusu

The Nigerian Exchange (NGX) reversed losses on Friday, adding N30 billion to investors’ portfolios after the Securities and Exchange Commission (SEC) announced higher minimum capital requirements for capital market operators.

The bullish momentum was driven by strong advances in Red Star Express, NCR Nigeria and SCOA, which lifted overall market sentiment.

Market capitalization rose by N30 billion to close at N106.353 trillion from an opening level of N106.323 trillion. In the same vein, the All-Share Index edged up by 0.04 percent, gaining 72.21 points to settle at 166,129.50, compared with 166,057.29 recorded in the previous session.

Market breadth closed positive, as 43 stocks advanced against 26 decliners.

Red Star Express led the gainers with a 10 percent jump to close at N13.20 per share. NCR Nigeria followed closely with a 9.97 percent rise to N128.55, while SCOA climbed by 9.96 percent to finish at N14.90. Omatek Ventures added 9.94 percent to close at N1.77, and Deap Capital Management gained 9.85 percent to settle at N4.46.

On the losing side, McNicholas topped the decliners’ chart, shedding 8.81 percent to close at N6. Legend Internet fell by 7.56 percent to N5.50, while Cornerstone Insurance dropped by 6.48 percent to close at N6.35. Cileasing declined by 6.29 percent to N8.20, and Austinlaz lost 5.78 percent to finish at N3.75 per share.

Despite the market’s rebound, trading activity weakened during the session. A total of 539.9 million shares valued at N16.7 billion were traded in 48,023 deals, down from 1.03 billion shares worth N31.6 billion exchanged in 51,227 transactions on Thursday.

Zenith Bank dominated trading, accounting for 54.55 million shares valued at N3.79 billion. The stock represented 10.10 percent of total market volume and 22.68 percent of the total value traded.

The rally followed the SEC’s announcement on Friday of new capital thresholds for all capital market operators, with June 30, 2027, set as the deadline for compliance.