The Nigerian Exchange Limited (NGX) is weighing a big change. It wants to stretch trading hours from the current 9:30 am – 2:30 pm time slot to a full day window of 9:00 am – 5:00 pm West African Time (WAT). The idea has been quietly circulating for years. It’s gathering momentum now.
The stock exchange had previously closed each day at 12:30 pm. In December 2010, the trading hours were widened to 9:30 am – 2:30 pm WAT. They did this to attract more foreign investors and boost liquidity.
A few months later, the Interim Administrator intended to increase the trading hours to 4:30 pm WAT, but we never saw that implemented. Fifteen years later, the trading hours want to be stretched again.
By keeping the market open longer, NGX hopes to increase daily turnover and attract foreign flows. This will align Nigeria with global standards. For traders, this might mean more room to make large orders and reduce the rush at market close.
Trading hours run longer. NGX’s decision is not exactly foreign. London Stock Exchange, Euronext in Amsterdam, and Deutsche Börse in Germany operate for eight and a half hours, from 9:00 am to 5:30 pm CEST. In Asia, Tokyo runs 5 hours of trading, while Hong Kong runs over 5 hours.
In Africa, Kenya’s trading activities start at 9.00 am and continue until 3.00 pm. While in South Africa, the Johannesburg Stock Exchange (JSE) is considering introducing 24-hour trading to align with global market trends.
Stretching trading time signals that Nigeria is ready to play on the same field as global peers. Will these longer hours really bring liquidity? We’ll see.
