The Nigerian Exchange (NGX) delivered a resounding comeback on Wednesday, adding N2.6 trillion to its total market value as investor concerns over impending capital gains tax (CGT) eased following government pledges for stakeholder engagement.
Finance Minister Wale Edun committed to a measured rollout of the new tax framework, vowing close consultation with market participants ahead of the January 2026 effective date. The statement quelled fears that had sparked heavy selling in prior sessions.
Market capitalization leaped from N90.833 trillion to N93.455 trillion, a 2.89% jump. The NGX All-Share Index mirrored the advance, closing at 145,405.39 points after rising from 141,327.30.
The swift reversal highlighted bargain-hunting in undervalued blue-chips, with traders citing restored faith in policy predictability and a brighter economic horizon.
Banking Sector Steals the Show
Financial stocks powered the rally, with the banking sub-index soaring 7.51%. Flagship lenders GTCO, Zenith Bank, Access Holdings, and Ecobank Transnational each hit the daily 10% ceiling on robust volume.
Cowry Asset Management attributed the surge to compelling price-to-earnings ratios and anticipation of solid fourth-quarter results. “Investors are repositioning in high-quality banks ahead of year-end earnings momentum,” the brokerage said.
Consumer and Energy Names Join Upswing
The consumer goods gauge rose 2.25%, propelled by a 10% gain in Nigerian Breweries and steady buying in PZ Cussons and Dangote Sugar. Resilience in household spending despite inflationary pressures underpinned the move.
Oil and gas shares climbed 4.35%, led by Oando amid firmer Brent crude prices and upbeat sector profit forecasts. Insurance and industrial benchmarks added 6.72% and 1.15%, respectively, confirming widespread participation.
Overwhelmingly Bullish Breadth
Advancers dominated by a wide margin, leaving only a handful of laggards. Notable decliners included Austin Laz (-10%), NEM Insurance (-9.82%), and Abbey Building Society (-9.72%), mostly on profit-taking.
The lopsided positive breadth reinforced analyst views of a sentiment pivot, with accumulation signaling confidence in sustained recovery.
