Stock Market
Panic grips capital market operators over SEC new tenure rule
A new directive from the Securities and Exchange Commission (SEC) imposing tenure limits on directors of capital market operators has sent waves of anxiety across Nigeria’s financial markets, with many industry players scrambling to understand who is affected and how soon enforcement will begin. In a circular released last Friday, the SEC announced that directors of all Capital Market Operators (CMOs) designated as “significant public interest entities” will now be subject to strict tenure limits. According to the rule, directors may serve a maximum of 10 consecutive years in the same company and 12 consecutive years across the same group structure.
The Commission also introduced a 3-year “cool-off period” for Chief Executive Officers and Executive Directors who complete their maximum tenure, before they can be appointed as Chairmen. Even then, their tenure as Chairman will be capped at four years. The directive, which took immediate effect, has caused confusion within the capital market community. Several operators who spoke on the issue expressed concern over the lack of clarity on who qualifies as a “significant public interest entity.” Many fear the rules could prematurely end the careers of long-serving executives who have been instrumental in building some of the country’s most prominent capital market institutions.
One source said “this could mark the end for several top executives in some of Nigeria’s largest investment banks, stockbroking firms, and fund managers. We need to know who exactly is affected.” Another operator raised concerns that while some firms may not be listed on the Nigerian Exchange, they may still fall within the SEC’s crosshairs due to their systemic relevance or public-facing operations. “It’s not just listed companies that should be worried. If you’re big, active, and handle public funds—even as a private firm—you may be caught,” the source added.
Interestingly, some operators pointed out that the SEC already plays a central role in approving board appointments for all capital market operators, including Directors, CEOs, and INEDs.
This makes the new directive even more striking, as it suggests that there may have been instances in the past where SEC-approved appointments may not have fully complied with the principles of independence or tenure limits now being emphasized. The circular, in that sense, appears to be both a course correction and a warning shot, signaling tighter enforcement going forward. Although the SEC did not publish a list of affected institutions, the circular specifies that designation as a significant public interest CMO is “as determined by the Commission,” a phrasing that has only fueled speculation. However, sources with knowledge of the circular said that the rule does not apply to publicly quoted companies like banks and financial holding companies, nor to regular private companies. The rule, they clarified, is more likely to affect Financial Market Infrastructure (FMI) companies, including entities like FMDQ Group, Central Securities Clearing System (CSCS), NGX Group, and NG Clearing that such transitions “erode the neutrality” expected of independent directors and compromise their ability to provide objective oversight.
NGX market capitalisation inched up on Thursday as equity investors gained more than N92 billion in a wide price upswing that has lasted for three days. Trading activities closed on a positive note, and the bargain hunting boosted key market performance indicators by 0.10%. The stock market index, or the All-Share Index, increased by 152.28 basis points, or 0.10%, to close at 145,476.15 basis points.
Also, NGX market capitalisation climbed by ₦97.06 billion to close at ₦92.73 trillion. Despite the negative breadth, the market rally reflects investors’ continued caution in the stock market. Stockbrokers reported buying interest in selective stocks including OANDO, WAPIC, UACN, TRANSCORP, GTCO, and others across all sectorial indexes.
In contrast, market activities inched lower as the total volume of all trades and their combine value by -14.15% and -8.47% respectively. Today, approximately 1,932.45 million units valued at ₦19,192.53 million were transacted across 23,369 deals.
FIDELITYBK was the volume driver, accounting for 9.04% of all stocks volume executed in the local bourse, followed by GTCO (8.25%), ZENITHBANK (7.90%), ETI (6.38%), and ACCESSCORP with 5.16%.
GTCO topped value chart, accounting for 19.52% of total value of all trades executed on the exchange – the highest traded on the exchange.
UACN led gainers chart, up by +10.00%, trailed by MORISON (+9.94%), ETI (+8.53%), WAPIC (+8.47%), MANSARD (+7.75%), FTNCOCOA (+7.10%), and seventeen others.
A total of twenty-eight (28) stocks depreciated, according to market report released by Atlass Portfolio Limited. With a price depreciation of -10.00%, ELLAHLAKES and EUNISELL both topped the worst performers’ chart, followed by TRANSCOHOT (-9.95%), OMATEK (-9.23%), GUINEAINS (-8.46%), and CAP (-6.16%).
Hence, the market breadth closed on a negative note, as there were 23 gainers and 28 losers. The sectoral performance was positive, as all five major market sectors appreciated. The insurance sector led with an increase of +1.56%, followed by the banking sector (+0.91%), the industrial goods sector (+0.48%), the consumer goods sector (+0.28%), and the oil & gas sector (+0.08%).
Nigerian Exchange (NGX) continued its upward trajectory on Wednesday, with the All-Share Index climbing by 0.27% to reach 145,323.87 points. NGX market capitalisation rose to ₦92.38 trillion as equities investors gained N252 billion. The market demonstrated positive momentum, reflected in a breadth ratio of 1.9x, with 30 stocks posting gains compared to 16 that declined, stockbrokers said. The bullish momentum was fuelled by interest in some oversold stocks across key sectors. Among the top performers were GUINNESS, NCR, NGXGROUP, MULTIVERSE, and SKYAVN, while VERITASKAP, LASACO, PRESTIGE, ROYALEX, and ETI experienced the most significant declines.
Stockbrokers also noted positive price movement in BUACEMENT, UBA, GUINNESS, WEMABANK, STERLINGNG, among others. The All-Share Index added 395.51 basis points to close at 145,323.87 basis points. Trading metrics presented contrasting patterns as the volume of shares traded jumped dramatically by 271.27% to 2.25 billion units, and the number of transactions increased 45.45% to 21,513 deals. Conversely, the total value of transactions dropped 47.17% to ₦20.97 billion. ACCESSCORP emerged as the most traded stock, accounting for 13.60%, followed by ZENITHBANK (13.17%), GTCO (8.70%), STERLINGNG (6.27%), and FIDELITYBK with 5.25%.
ZENITHBANK topped the value chart, accounting for 20.54% of the total value of all trades executed in the local bourse. GUINNESS led the performers chart, gaining +10.00%, trailed by NCR (+9.98%), NGXGROUP (+9.96%), MULTIVERSE (+9.95%), SKYAVN (+9.74%), OMATEK (+5.69%), and twenty-four others. A total of fifteen (15) stocks depreciated, according to data obtained from the local bourse. With a price depreciation of -4.47%, VERITASKAP topped the worst performers’ chart, followed by LASACO (-3.77%), PRESTIGE (-3.03%), ROYALEX (-2.56%), ETI (-1.88%), and CORNERST (-1.75%). Hence, the market breadth closed on a positive note, as there were 30 gainers and 15 losers, stockbrokers reported.
Sector performance showed varied results: the Banking sector led with a 0.65% gain, followed by Industrial Goods which rose 0.47%; Consumer Goods up 0.38%; and Insurance advancing 0.27%. In contrast, the Oil & Gas sector fell 0.47% and Commodities declined 0.24% Ikeja Hotels hits highest valuation in 52 weeks gaining 45 per cent
The NGX All-Share Index fell by 0.14 per cent to 143,520.53, while market capitalisation closed at N91.286 trillion for the week.
This, compared with 143,722.62 points and N91.415 trillion recorded in the previous week, reflects weaker sentiment across the market.
Investors “lost about N129 billion this week as profit-taking continued across major counters”. Most indices closed lower, except NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX AFR Div. Yield, NGX AFR Bank Value, NGX MERI Growth, NGX MERI Value, NGX Lotus II, NGX Growth and NGX Sovereign Bond.
These indices appreciated between 0.01 per cent and 0.94 per cent, showing selective interest in defensive stocks. Turnover rose to 4.140 billion shares worth N115.889 billion in 102,351 deals, higher than 2.668 billion shares valued at N106.264 billion last week.
The financial services industry led activity with 3.358 billion shares worth N81.175 billion in 43,392 deals.
This represented 81.10 per cent of total volume and 70.05 per cent of total value traded during the week.
The services industry followed with 148.272 million shares worth N1.319 billion exchanged in 7,181 deals. The consumer goods sector placed third with 143.638 million shares worth N7.988 billion in 12,099 trades.
Cornerstone Insurance, GTCO and Access Holdings accounted for 2.005 billion shares worth N47.535 billion in 10,185 deals.
These three stocks contributed 48.43 per cent of total turnover volume and 41.02 per cent of total value.
Thirty-eight equities gained during the week, up from 20 recorded previously, while 36 declined, compared with 60 in the prior week.
Seventy-three equities remained unchanged, higher than 67 posted in the previous trading week. Ikeja Hotel, NCR Nigeria, UACN, CWG and Veritas Kapital emerged top gainers, advancing by N9.40, N13.55, N8.90, N1.90 and 18k, respectively.
Meyer, Sunu Assurances, UPDC, Tantalizer and Abbey Mortgage Bank topped the losers’ chart, shedding N3.05, 68k, 68k, 26k and 65k, respectively.
The NGX disclosed the listing of 243,424 additional units of the Chapel Hill Denham Nigeria Infrastructure Debt Fund.
It said, “The additional units arose from the Fund’s 2025 Q3 scrip dividend distribution to qualifying holders.”
The NGX added that the Fund’s total units have increased to 1,056,257,953 following the fresh listing.
The exchange also confirmed the extension of VFD Group’s Rights Issue following SEC approval. It said trading in the company’s rights “will now close on Friday, December 26.”
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