Market Capitalisation Rises by N6.8tn in January as Stock Market Opens 2026 on Buoyant Note  

Kayode Tokede

Nigeria’s equities market began 2026 on a buoyant note, with the Nigerian Exchange Limited (NGX) recording a N6.8 trillion rise in market capitalisation in January, driven by strong corporate earnings, sustained macroeconomic reforms, and renewed investor confidence.

Data from the NGX showed that total market capitalisation rose by N6.8 trillion, or 6.8 per cent, to N106.15 trillion as of January 30, 2026, from N99.376 trillion at the close of trading on December 31, 2025.

The rally pushed the market past the historic N100 trillion marks early in the year, underscoring the resilience of the bourse amid lingering global and domestic uncertainties.

Market operators attributed the upbeat performance to strong earnings by listed companies and the cumulative impact of reforms undertaken in recent years by the Central Bank of Nigeria (CBN) and the NGX, which have strengthened market fundamentals and deepened investor participation.

The NGX All-Share Index (ASI) closed January 2026 at 165,370.40 basis points, representing a year-to-date (YtD) gain of 6.27 per cent, or 9,757.37 basis points, from its opening level of 155,613.03 basis points.

By contrast, the market’s performance in January 2025 was relatively modest, with the ASI closing at 104,496.12 basis points.

This represents a YtD increase of 1.53 per cent or 1,569.72 basis points from its 2024 closing level of 102,926.40 points.

Market capitalisation at that time had increased by N1.95 trillion, closing at N64.709 trillion, up from N62.763 trillion in December 2024, as earlier reported by THISDAY.

Despite cautious trading by investors in January 2026, all major sectoral indices closed in positive territory, reflecting broad-based buying interest across the market.

The NGX Oil and Gas Index led the rally with a gain of 13.8 per cent to close at 3,038.79 basis points. It was followed by the NGX Insurance Index, which appreciated by 11.8 per cent to end the month at 1,329.16 basis points.

The NGX Banking Index advanced by 6.99 per cent to close at 1,621.77 basis points, while the NGX Industrial Goods Index gained 5.45 per cent to settle at 5,985.87 basis points. The NGX Consumer Goods Index also recorded a positive performance, rising by 3.2 per cent to close at 4,103.12 basis points on January 30, 2026.

Market analysts noted that the strong January showing followed an impressive full-year performance in 2025, when the NGX ASI delivered an annual return of 51.2 per cent.

The rally in 2025 came despite double-digit inflation.

It was supported by policy adjustments, including the CBN’s decision to cut the monetary policy rate to 27 per cent in a bid to stabilise the naira, improve foreign exchange liquidity, and attract foreign portfolio investments.

The equities market’s performance in 2025 marked a clear break from the weak showing recorded between 2015 and 2019, a period overshadowed by the oil price crash, foreign exchange pressures, and the 2016 recession. Analysts have observed that the 2020s have ushered in renewed growth and depth in Nigeria’s capital market.

Commenting on the January 2026 performance, Investment Banker and Stockbroker, Tajudeen Olayinka, said the early-year rally largely reflected the momentum carried over from 2025, coupled with investor expectations around full-year 2025 results from listed companies.

He explained that most investors had already digested companies’ nine-month results and were positioning ahead of the audited full-year numbers. According to him, the rally appeared to be a delayed year-end effect that spilled into January.

“What we are seeing is not unusual. Ideally, some of these reactions should have happened between late November and December 2025. Still, the market is now adjusting and cooling off as investors await the release of full-year results,” Olayinka said.

Chief Research Officer at Investdata Consulting Limited, Mr. Ambrose Omordion, also attributed the January performance to expectations of strong 2025 full-year earnings by listed firms, supported by improving macroeconomic indicators.

He noted that relative stability in the foreign exchange market and attractive yields continued to drive market participation, a trend he expects to persist into the first quarter of 2026.

“The technical rally started in December 2025, and the results released so far have been largely impressive, even though some came below market expectations. As more results are released in February, the momentum is expected to be sustained,” Omordion added.

Looking ahead, the Managing Director of Arthur Stevens Asset Management Limited (ASAM), Mr. Olatunde Amolegbe, identified several factors likely to shape market performance in 2026.

These include elevated liquidity ahead of elections, strategic portfolio reallocations, major corporate actions, foreign exchange stability, easing inflation pressures, an accommodative monetary stance, and ongoing tax and fiscal reforms.

He was optimistic on the outlook for Nigerian equities, projecting a 45.9 per cent return on the NGX ASI in 2026 under its base-case scenario.

Key supports, according to him, include stable prices and exchange rates, modest interest rate cuts, ample pre-election liquidity, and active capital-raising by insurance companies and pension fund administrators.