Historic rally continues with robust trading activity, strong breadth, and investor confidence, though risks remain on the horizon.
The Nigerian Exchange (NGX) opened the year on a bullish trajectory, with the All-Share Index (ASI) crossing the 156,000 mark for the first time in history, a milestone that underscores strong investor confidence in the market.
For the week ended 2 January 2026, the ASI closed at 156,492.36 points, representing a 1.92 percent increase from 153,539.83 points recorded the previous week. Market capitalization also rose to ₦99.93 trillion, a 2.09 percent gain from ₦97.89 trillion, reflecting the broad-based optimism that continues to drive equities higher.
Trading activity surged significantly, with 7.8 billion shares worth ₦134.4 billion exchanged across 150,799 deals, compared to 2.8 billion shares traded the prior week. This sharp rise in volume and value highlights renewed investor participation and liquidity inflows at the start of the year.
Market breadth was positive, with 73 equities advancing, 23 declining, and 51 unchanged, indicating improved sentiment compared to the previous week, when 30 stocks closed lower.
Among the best-performing stocks were MBENEFIT and FTNCOCOA, both posting 10 percent gains. Banking and consumer stocks also recorded notable advances, reflecting investor rotation into defensive plays amid macroeconomic uncertainties. On the downside, 23 equities closed weaker, though this was fewer than the prior week, signaling a healthier market balance.
The broader picture remains compelling. The NGX delivered a historic 51.2 percent full-year return in 2025, its strongest rally in nearly two decades, placing Nigeria among the best-performing equity markets globally.
Analysts expect reforms, new listings, and corporate actions to sustain momentum into 2026, with telecoms, banking, cement, and energy sectors likely to define the equity story.
However, risks remain. Inflationary pressures and foreign exchange volatility could weigh on consumer goods and banking margins. Oil price swings may affect Seplat Energy and other energy-linked stocks, while regulatory changes in telecoms and banking could reshape competitive dynamics.
Despite these challenges, the NGX’s strong start to 2026 signals that investor appetite remains resilient, and the market is poised to build on last year’s record-breaking performance.
