The Nigerian Exchange (NGX) Limited staged a sharp rebound on Wednesday as investors responded positively to reassurances from the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, regarding the government’s position on Capital Gains Tax (CGT) in the capital market.
The clarification helped restore confidence across the investment community, reversing the previous session’s sharp decline and fuelling renewed optimism among institutional and retail investors alike.
Further bolstering investor sentiment were insights shared on X (formerly Twitter) by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who provided additional context on the government’s intent, emphasizing that the policy review was not designed to stifle market activity but to promote fairness, transparency, and sustainable growth within the capital market ecosystem.
During the trading session, Nigerian stocks appreciated by 2.88 per cent, with the All-Share Index (ASI) adding 4,076.53 points to close at 145,403.83 points compared with the previous day’s 141,327.30 points and the market capitalisation expanding by N2.593 trillion to N92.478 trillion from N89.885 trillion.
The midweek rebound by Customs Street has left its year-to-date return at 41.27 per cent. The rally follows a week marked by profit-taking pressures and macroeconomic uncertainties.
It was observed that the growth witnessed yesterday was driven by interests in GTCO, Oando, Zenith Bank, Access Holdings and Sovereign Trust Insurance, which gained 10.00 per cent each to sell at N85.80, N39.60, N59.40, N22.00, and N2.86, respectively.
The losers’ table was topped by the trio of Austin Laz, Vitafoam Nigeria, and Transcorp Power, which fell by 10.00 per cent each to close at N2.61, N84.60, and N307.80 apiece, while Red Star Express lost 9.80 per cent to trade at N9.20, with Abbey Mortgage Bank shedding 9.72 per cent to finish at N6.50.
Investor sentiment was bullish yesterday with a positive market breadth index after the bourse ended with 65 advancing stocks and 12 declining stocks.
Trading activity was equally vibrant, with the trading volume up by 22.93 per cent to 806.4 million units from the previous day’s 656.0 million, the trading value increased by 72.66 per cent to N50.8 billion from N29.4 billion, and the number of deals went down by 17.08 per cent to 24,509 deals from 29,558 deals.
Speaking on the development, the chief executive of NGX Group Plc, Mr Temi Popoola, attributed the rebound to “renewed investor confidence and the inherent resilience of Nigeria’s capital market.”
“Recent policy engagements and assurances from fiscal authorities are easing concerns and restoring momentum across key sectors.
“At NGX Group, our focus remains on constructive advocacy and deep policy engagement to ensure alignment between fiscal direction and market realities.
“This synergy is vital for unlocking sustainable growth, deepening liquidity, and connecting private capital with national development priorities.
“With continued collaboration and policy consistency, we are confident the market is well-positioned to close the year on a strong note,” he added.
Also commenting, the chief executive of NGX Limited, Mr Jude Chiemeka, said, “The strong rebound underscores the efficiency and responsiveness of our market infrastructure.”
“The breadth of participation and surge in trading activity point to renewed investor appetite and growing confidence in the transparency and depth of our market operations.
“We remain committed to providing a world-class trading environment that supports liquidity, enhances efficiency, and facilitates seamless access to capital for issuers and investors alike,” he added.