Investors on the Nigerian Exchange Limited (NGX) enjoyed a remarkable start to 2026, recording unprecedented gains of N29 trillion in the first quarter. The market’s surge reflects sustained buying interest across key sectors and growing optimism about Nigeria’s economic outlook. According to NGX data, market capitalization rose sharply from N99.937 trillion at the start of January to N128.969 trillion by March 27, marking a 29 per cent increase within just three months.
The All-Share Index (ASI), which tracks the performance of listed equities, also recorded a robust 22.1 per cent gain, climbing from 156,492.36 points to 200,913.06 points. Analysts attributed the rally to renewed investor confidence, strong corporate earnings expectations, and increased participation from domestic and institutional investors seeking higher returns amid declining yields in fixed-income instruments. Stability in the foreign exchange market, moderating inflation expectations, and improved liquidity further encouraged investment in equities.
Sectoral performance revealed oil and gas as the top performer, delivering a year-to-date return of 63.94 per cent, while industrial goods followed with a 55 per cent gain. Banking stocks rose nearly 26 per cent, fueled by expectations of recapitalization and strong earnings, while consumer goods and insurance saw moderate gains of 9.42 per cent and 8.96 per cent, respectively. Experts noted that retail investor participation has increased significantly, driven by financial literacy and easier access to trading platforms, helping to boost overall market liquidity.
Corporate earnings played a pivotal role in sustaining the bullish trend. In 2025, Dangote Cement Plc posted a profit before tax of N1.53 trillion, a 109 per cent increase from the previous year, while Nascon Allied Industries Plc and MeCure Industries Plc posted pre-tax profits of N48.2 billion and N7.93 billion, representing double-digit year-on-year growth. Beta Glass Plc also recorded a 155 per cent increase in pre-tax profit. These results reinforced investor confidence, attracting new participants to the equities market.
Market observers remain cautiously optimistic about the coming months. While profit-taking and macroeconomic developments may cause intermittent corrections, ongoing economic reforms and strong corporate performance are expected to sustain growth. Patrick Ajudua, President of the New Dimension Shareholders Association of Nigeria, highlighted that stable forex, declining inflation, and robust company fundamentals position the Nigerian stock market for continued gains throughout 2026.
source: The Guardian