Managing Director of Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, has said that the capital market growth  in the first seven months of 2026 was driven predominantly by domestic capital rather than a resurgence in foreign portfolio investment, 

He said the NGX index grew by 89670.65 basis points , representing a surge of 57.62 per cent to  close the month of July at 245283.68 points while  market capitalisation  grew by N58.95 trillion, or 59.32 per cent return within the period under review. 

Speaking at the  Capital Market Review in the first half  and Outlook for Second Half of 2026 financial year, Aig-Imoukhuede noted that the performance of the Nigerian Exchange (NGX) reflected stronger domestic participation, improving macroeconomic conditions and rising investor confidence, rather than significant foreign capital inflows.

He said the performance placed Nigeria among the world’s strongest-performing equity markets in dollar terms, according to Bloomberg data.

However, Aig-Imoukhuede cautioned that the scale of the rally should prompt investors to assess whether the performance represented a sustainable structural recovery or a temporary market re-rating.

Speaking further he said “These numbers are certainly worth celebrating,” noting that the rally reflected a strengthening domestic capital base, improving macroeconomic stability and growing opportunities for long-term investors.

The Coronation Asset Management CEO said the changing composition of market participation was one of the most significant features of the 2026 rally.

According to him, domestic investors have become the dominant force behind the market’s performance, even as foreign participation has declined, stressing that by June 2026, foreign investors accounted for 12.1 per cent of total NGX transaction value, down from 27 per cent a year earlier.

He, however, said the decline in foreign participation should not be interpreted as a complete withdrawal of international investors from Nigeria,as the value of foreign investors’ portfolios increased modestly from N1.13 trillion to N1.16 trillion during the first half of the year, suggesting that the major shift was in the relative scale of domestic investment activity.

“What changed was the scale of domestic participation, which expanded at a far more significant pace of 129.1 per cent,” he said.

Foreign portfolio investors were also net sellers of Nigerian equities during the first six months of the year, despite the broader market rally.

Aig-Imoukhuede attributed part of the foreign investors’ positioning to the attractiveness of short-dated Nigerian government securities, which offered yields close to 20 per cent.

“From a pure risk-adjusted perspective, that allocation decision was understandable,” he said.

Identifying domestic institutional investors, particularly pension funds, as important contributors to the equities rally following changes to investment thresholds by the National Pension Commission (PenCom), he said the resurgence in domestic retail participation also contributed significantly to the market’s performance, reinforcing what he described as a structural shift in the investor base.