Market Update For January 16, 2026
The Nigerian equities market closed the week on a mildly positive note on Friday, snapping the previous session’s losses as selective bargain hunting returned to a handful of fundamentally sound and technically attractive stocks. While the rebound was modest, it reflected growing investor sensitivity to value at lower price levels, particularly in banking, insurance, and select consumer names.
Market sentiment remained cautious, as evidenced by the sharp decline in traded volume and value. Investors largely avoided aggressive positioning, opting instead for selective exposure amid ongoing uncertainty around earnings sustainability, interest rate direction, and global macro risks. This cautious stance suggests that the day’s gains were more corrective than trend-setting.
Sectoral performance was mixed, highlighting the ongoing rotation within the market. The banking sector outperformed, supported by renewed interest in tier-one and mid-tier lenders with resilient balance sheets and improving earnings visibility. Insurance stocks also attracted buying interest, reflecting speculative positioning and expectations of improved underwriting margins. Consumer goods stocks edged higher as investors cherry-picked names with relatively defensive demand profiles. In contrast, industrial and oil & gas stocks experienced mild profit-taking, partly due to valuation concerns and lingering cost pressures.
A key feature of the session was the emergence of new 52-week highs in selected stocks, pointing to strong stock-specific momentum despite the broader market’s sideways movement. This divergence underscores the importance of bottom-up stock selection in the current environment, as broad index gains remain constrained by weak participation and profit-taking in heavyweights.
From a technical perspective, the market remains in a consolidation phase following its recent rally. The rebound came on declining volume, signalling limited conviction among buyers. Momentum indicators suggest the index is holding above short-term support levels, but the absence of strong follow-through buying implies resistance remains firm around recent highs. Until volume improves and breadth expands meaningfully, the market is likely to remain range-bound, with short-term traders dominating activity.
On the global front, oil prices closed higher, offering some support to energy sentiment, though volatility persists. Brent crude rose above $64 per barrel, while WTI traded close to $60, as supply risk concerns lingered despite easing geopolitical tensions in the Middle East. Investors continue to monitor developments around potential supply disruptions and the pace of additional barrels returning to the global market, particularly from sanctioned producers. The mixed oil outlook continues to influence positioning in energy-linked equities on the NGX.
Looking ahead, we expect cautious trading to persist in the near term, with investors focusing on earnings quality, dividend sustainability, and relative value. Stocks showing strong technical structure, improving liquidity, and defensive fundamentals are likely to continue attracting interest. However, meaningful upside for the broader market will depend on renewed institutional participation and clearer macro signals, particularly around interest rates and inflation dynamics.
Market Summary:
The All-Share Index (ASI) closed up 0.04% to 166,129.50 points, as market capitalisation increased by ₦30.46bn to ₦106.35trn. Market breadth remained positive at 41 gainers versus 26 losers. Top gainers were REDSTAREX (+10.00%), NCR (+9.97%), SCOA (+9.96%), DEAPCAP (+9.85%), NEIMETH (+9.78%), and CHAMPION (+9.38%), while MCNICHOLS (-8.81%), LEGENDINT (-7.56%), CORNERST (-6.48%), UPDC (-4.62%), and FIDSON (-4.24%) led the decliners’ list. Market movers were led by ZENITHBANK, which topped activity with 54.55m shares valued at ₦3.79bn, followed by GTCO, JAIZBANK, and NSLTECH in turnover.
