Nigeria’s equities market rebounded on Wednesday for the first time this week as investors shifted focus from banking stocks to resilient non-financial equities.
Seplat Energy Plc led the rally, gaining 9.78 percent to close at N5,450 per share, triggering a broader market recovery despite prevailing caution from the Central Bank of Nigeria (CBN) directive on bank capital restrictions.
The Nigerian Exchange Limited (NGX) All Share Index (ASI) advanced by 1.63 percent to settle at 116,786.87 points, while market capitalisation appreciated by N1.184 trillion to close at N73.681 trillion, reversing two consecutive sessions of negative performance.
Seplat’s surge from N4,964.40 to N5,450 accounted for a significant portion of the market’s upside momentum. The rally was supported by strong gains from other non-bank equities, including Beta Glass Plc, which rose by 9.99 percent to close at N250.95, and NEM Insurance Plc, which appreciated by 10 percent to close at N16.50.
The strong midweek performance marked the highest daily gain since the CBN issued its June 13, 2025 circular titled “Letter to All Banks: Temporary Suspension of Dividend Payments, Bonuses and Investment in Foreign Subsidiaries.”
The policy, which instructed banks to suspend dividend distributions, defer executive bonuses, and halt offshore expansions, had dampened market sentiment and triggered a wave of selloffs across the banking sector.
However, Wednesday’s session reflected a strategic rotation by investors toward fundamentally sound stocks outside the financial services sector, helping the market stabilise despite ongoing regulatory uncertainty.
Investor Participation Remains Strong
Trading activity remained elevated as investors executed 19,727 deals, exchanging 640.08 million shares worth N26.01 billion. The most actively traded stocks included Zenith Bank, Access Holdings, UBA, Nigerian Breweries, and Fidelity Bank.
Although banking stocks remained under pressure due to regulatory headwinds, the broader market response signaled improving investor confidence and a recalibration of portfolio allocations.
Market analysts noted that investors appear to be seeking value in sectors with stable earnings outlooks and minimal direct exposure to CBN capital restrictions.
