By Kingsley Ani
The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement on Wednesday, September 8, with market capitalisation gaining N22.58 billion as stronger trading activity accompanied the rise in the market index.
The advance puts renewed attention on the smaller, less liquid securities market, where movements in a handful of quoted companies can have an outsized effect on overall market performance.
DEVELOPMENT:
The NASD market capitalisation increased to N2.721 trillion from N2.694 trillion, representing a N22.58 billion gain, while the NASD Security Index (NSI) rose 37.62 points to 4,533.41 points from 4,495 points.
The 0.84 percent market gain was driven by two price advancers. Central Securities Clearing System (CSCS) Plc rose N4.57 to N105.87 per share from N101.30, while Food Concepts Plc gained 8 Kobo to N2.49 per share from N2.41.
Two stocks moved in the opposite direction. NASD Plc declined N3.45 to N31.20 per share from N34.65, while FrieslandCampina Wamco Nigeria Plc fell 36 Kobo to N169.99 from N170.35.
DATA:
The more significant signal came from market activity rather than the index alone.
Investors traded 998,890 units of securities, up 364 percent from 215,005 units in the previous session. Trading value increased 84 percent to N61.2 million from N33.2 million, while the number of deals rose 78.9 percent to 34 from 19.
The year-to-date picture remains concentrated. Great Nigeria Insurance (GNI) Plc led trading by value, with 3.4 billion units worth N8.4 billion exchanged. Infracredit Plc followed with 2.3 billion units valued at N6.5 billion, while CSCS recorded 81.6 million units worth N5.9 billion.
By volume, GNI again led with 3.4 billion units, followed by Infracredit with 2.3 billion units and Resourcery Plc with 1.1 billion units worth N415.7 million.
SIGNIFICANCE:
The session shows that NASD’s latest gain was accompanied by a meaningful increase in market participation. The sharp rise in volume, value and deal count suggests that the rally was not simply an index movement generated by thin activity.
However, concentration remains a structural feature of the market. GNI, Infracredit and CSCS account for substantial portions of year-to-date activity, highlighting the liquidity gap between the more actively traded securities and the wider NASD universe.
For investors, that distinction matters. A rising index does not automatically translate into broad-based liquidity or easier price discovery across the market.
NEXT MOVE:
The immediate watchpoint is whether the increase in trading activity persists beyond a single session. Sustained volume and deal growth would provide stronger evidence of improving investor participation.
CSCS and the other recent gainers also warrant attention, while the declines in NASD Plc and FrieslandCampina Wamco Nigeria Plc will test whether the market can maintain its positive trajectory amid divergent stock performance.
OUR LENS:
The N22.58 billion increase in market capitalisation is useful, but the more revealing development is the simultaneous expansion in volume, value and transactions.
The NASD market is signalling that its headline performance increasingly needs to be read through the quality of participation beneath the index. If higher turnover broadens beyond a small group of dominant securities, the market’s advance could begin to represent deeper liquidity and stronger price discovery, rather than simply a concentration-driven rise.
Kingsley Ani is a journalist who has over the years been covering capital, markets, corporate results, economic and public-interest developments with a focus on clear, factual reporting.
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