NGX gains N30bn as SEC raises capital requirements for operators

The Nigerian Exchange (NGX) rebounded on Friday, with market capitalization gaining N30 billion to close at N106.353 trillion, up from N106.323 trillion. The All-Share Index also appreciated by 0.04% (72.21 points) to 166,129.50. This bullish run was propelled by gains in Red Star Express (10% to ₦13.20), NCR Nigeria (9.97% to ₦128.55), and SCOA (9.96% to ₦14.90). Market breadth was positive with 43 gainers against 26 losers.

The rally comes after the Securities and Exchange Commission (SEC) announced on the same day that it has raised the minimum capital requirements for all capital market operators. The SEC has set a compliance deadline of June 30, 2027, giving operators over 18 months to adjust to the new thresholds. While the specific capital figures were not detailed in the report, the decision aims to strengthen the capital market's operational capacity.

Trading activity, however, weakened during the session. Total shares traded fell to 539.9 million (worth ₦16.7 billion) from 1.03 billion shares (valued at ₦31.6 billion) the previous day. Zenith Bank dominated trading, accounting for 10.10% of the volume (54.55 million shares) and 22.68% of the value (₦3.79 billion). The SEC's move to raise capital requirements is a significant regulatory shift for Nigeria's capital market operators, potentially influencing consolidation among smaller firms. With the June 2027 deadline, will smaller operators merge to meet the new thresholds, or will we see new entrants with stronger financial backing reshape the market?

SOURCE: https://dailypost.ng/2026/01/17/ngx-rebounds-with-n30bn-gain-after-sec-hikes-capital-requirements/