Coronation Sees NGX Rally Running On as FTSE Russell Readmission Nears
By Aboki Forex —
The Nigerian Exchange Limited All-Share Index rose 2.36 per cent week-on-week to close at 246,992.42 points, pushing its year-to-date return to 58.72 per cent. Coronation Asset Management expects that momentum to hold into coming sessions, with the market's return to the FTSE Russell Frontier Market universe on 21 September as the main trigger.
In its weekly market update, the investment research firm said institutional positioning ahead of the global index adjustment is already supporting market breadth and liquidity.
"We expect the positive market bias to persist, with the upcoming FTSE Russell reclassification potentially providing an additional catalyst for sentiment, particularly in affected stocks ahead of its September 21 effective date," Coronation stated.
Three-year exclusion ends
The upgrade closes a three-year exclusion cycle that started in September 2023, when FTSE Russell cut Nigeria to Unclassified Market status over severe foreign exchange illiquidity and chronic delays in repatriating foreign capital.
Recent foreign exchange reforms, cleared dollar backlogs and the smooth move to a T+1 settlement cycle on 1 June, 2026, cleared the final regulatory hurdles for readmission.
Ahead of the 21 September effective date, FTSE Russell released its September 2026 index review, clearing 31 Nigerian equities across large, mid and small-cap categories for inclusion. Ten stocks were designated "Newly Eligible" large-cap counters: Aradel Holdings, Dangote Cement, First HoldCo, Guaranty Trust Holding Company, MTN Nigeria, Nestlé Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings and Zenith Bank.
Coronation expects buying to stay concentrated in these liquid counters as global portfolio managers realign index-tracking funds to capture renewed offshore inflows.
Model portfolio beats the index
The Coronation Research Model Equity Portfolio gained 2.03 per cent for the week, lifting its year-to-date return to 64.01 per cent. That is 529 basis points ahead of the broader index.
Consumer goods and energy holdings drove the gain. Nigerian Breweries climbed 18.80 per cent, Seplat Energy added 10.00 per cent and Aradel Holdings rose 8.51 per cent. Those double-digit moves offset profit-taking in Beta Glass and NASCON Allied Industries.
Financial analysts at the firm said structural institutional demand, rather than short-term trading flows, is behind the run.
What it means for Nigerian investors
Reclassification matters for liquidity. Passive funds that track FTSE Russell's frontier benchmarks must buy Nigerian names once the change takes effect, which typically supports prices in the larger, more liquid counters first.
The naira also stands to gain if offshore funds return through the official foreign exchange window, though the scale of inflows will depend on how much foreign portfolio money actually follows the index change. Local investors holding the newly eligible large caps are positioned for the demand that usually builds in the days before an effective date.