Market Update For January 5, 2026
The Nigerian equities market continued its impressive start to 2026, extending its bullish run for the fourteenth consecutive session as investor confidence remained firmly anchored on equities. The first full trading week of the year opened with sustained buying interest across major sectors, reflecting improving risk appetite and ongoing portfolio rebalancing by both domestic and institutional investors.
The market’s positive tone was underpinned by strong participation in banking, insurance, consumer goods, and oil & gas stocks, as investors selectively increased exposure to companies with resilient fundamentals and earnings visibility. Despite the strong price appreciation recorded in recent sessions, demand remained steady, suggesting expectations of further upside as the market transitions fully into the earnings season.
Sector Performance:
Sectoral performance was uniformly positive, highlighting the strength of the current rally. The Insurance sector led the advance, supported by renewed interest in select names that continue to trade below intrinsic value. The Banking sector followed closely, with strong accumulation across tier-1 banks, driven by expectations of robust earnings, healthy capital positions, and sustained dividend payouts.
The Oil & Gas sector posted notable gains, aided by selective bargain hunting in upstream and downstream stocks, while the Consumer Goods sector benefited from renewed positioning in bellwether names on expectations of improved pricing power and volume growth. The Industrial Goods sector recorded modest gains, supported by selective demand in cement stocks amid steady construction-related activity.
Notably, all tier-1 banks closed higher, reinforcing their leadership role in the ongoing rally and underscoring sustained institutional interest in large-cap stocks.
Market Activity and Liquidity:
Market participation strengthened further as trading volume rose sharply by 58.12% to 695.65 million shares, signaling increased investor engagement. However, total transaction value declined by 28% to ₦18.57bn, indicating that activity was more volume-driven, with higher turnover in relatively low-priced stocks.
TANTALIZER dominated the volume chart with 71.75 million shares, accounting for a significant portion of total trades. On the value side, ZENITHBANK led the market with trades worth ₦3.51bn, reflecting sustained institutional demand. WAPCO and ARADEL also featured among the most traded by value, pointing to balanced participation across sectors.
Global Oil Market:
In the global oil market, crude prices traded broadly stable as investors weighed geopolitical developments against an already well-supplied market. Brent crude hovered around $61.12 per barrel, while U.S. West Texas Intermediate (WTI) traded near $57.73 per barrel. Market reaction to developments in Venezuela remained muted, with analysts noting that any potential supply disruptions were unlikely to materially impact global balances in the near term. Stable oil prices continue to offer mild support for oil-linked stocks and Nigeria’s macroeconomic outlook.
Technical Analysis:
From a technical perspective, the NGX All-Share Index remains firmly in a strong uptrend, trading well above its key short-term and medium-term moving averages. The persistence of higher highs and higher lows confirms bullish dominance, while strong market breadth continues to validate the sustainability of the rally.
However, momentum indicators suggest that the market is gradually approaching overbought territory after the extended run. Immediate technical support is seen around the 156,500–157,000 points region, which aligns with the recent breakout zone. On the upside, resistance is expected in the 160,000–162,000 points range, where profit-taking pressures may emerge. A brief consolidation around these levels would be healthy and could provide a base for further advances.
Outlook:
Looking ahead, market sentiment is expected to remain broadly positive in the near term, supported by strong liquidity, improving breadth, and sustained sector rotation into banks and fundamentally sound consumer names. Nevertheless, investors should remain mindful of potential short-term pullbacks, especially in stocks that have recorded sharp gains. A selective strategy focusing on quality stocks with strong earnings outlook, solid balance sheets, and attractive valuations is advised, while any market corrections may present opportunities for re-entry.
Market Snapshot
At the close of trading, the All-Share Index (ASI) gained 1.74% to settle at 159,215.48 points, reflecting strong overall market performance. Total market capitalisation rose by ₦1.87trn to ₦101.81trn. Market breadth was firmly positive, with 71 gainers against 7 losers. The top gainers included CADBURY at ₦26.40 (+10.00%), FIDSON at ₦60.50 (+10.00%), PZ at ₦49.50 (+10.00%), MAYBAKER at ₦20.90 (+10.00%), and OANDO at ₦52.40 (+9.95%). On the downside, JULI topped the losers’ chart, closing at ₦2.10 (-9.87%), alongside a few other marginal decliners.
