Market Update For January 19, 2026
Akintunde Oyedokun
The Nigerian equities market opened the new trading week on a cautious but stable note, reflecting a phase of consolidation after the recent strong rally that lifted prices to historic highs. Trading activities showed a clear mix of profit-taking and selective accumulation, as investors adjusted their portfolios rather than exiting the market. This behaviour points to a market that is pausing to reassess valuations, while underlying confidence in equities remains largely intact.
Despite the marginal decline recorded at the close, overall sentiment stayed supportive. Buying interest persisted across a wide range of stocks, particularly in names with improving earnings outlooks and strong price momentum. The continued emergence of stocks trading at fresh 52-week highs underscores sustained institutional participation and signals that longer-term investors are still positioning for further upside, even as short-term traders lock in gains.
Market Structure, Sector Rotation
Trading during the session was characterised by visible sector rotation. While some large-cap and mid-cap stocks experienced mild sell pressure, demand shifted towards select consumer, industrial and mid-tier stocks. This rotation helped to cushion the market from a deeper pullback and reinforced the view that liquidity remains within the equity space. The pattern suggests that investors are increasingly selective, favouring stocks with clear growth narratives, balance sheet strength and positive technical setups.
Technical Analysis
From a technical standpoint, the NGX All-Share Index continues to trade above its key short- and medium-term moving averages, confirming that the broader market structure remains bullish. However, the flat-to-bearish close and mixed volume indicate a consolidation phase rather than a reversal. Momentum indicators are gradually cooling from overbought levels, implying that the market is digesting recent gains. Immediate support is located around the 165,500–166,000 band, where buying interest has previously emerged, while resistance remains around the recent highs. A sustained break above resistance could trigger renewed upside momentum, whereas a loss of support may lead to short-term corrections.
Near-Term Market Outlook
Looking ahead, we expect near-term trading to remain range-bound with a positive bias. Investor focus is likely to remain on stock-specific fundamentals, earnings expectations and dividend prospects. Continued portfolio rebalancing, coupled with selective bargain hunting, should support prices, even as intermittent profit-taking persists. Barring any negative macroeconomic or policy surprises, the market is expected to maintain its sideways-to-positive trajectory, with sector rotation shaping performance.
Oil Market
In the global commodity space, crude oil prices traded largely steady as easing civil unrest in Iran reduced immediate concerns over supply disruptions. Brent crude slipped to $63.81 per barrel, while West Texas Intermediate (WTI) eased to $59.18 per barrel. Although prices edged lower, the broader short-term outlook for oil remains constructive, which could continue to provide a supportive backdrop for energy-related stocks on the domestic exchange.
Market Performance Snapshot
The NGX All-Share Index (ASI) closed marginally lower by 0.01% at 166,112.50 points, compared with 166,129.50 points in the previous session. Investors’ wealth dipped slightly as market capitalisation declined by ₦10.90bn to ₦106.34trn. Market breadth closed positive, with 43 gainers against 23 losers, reflecting sustained participation across the market despite the mild index pullback.
Market sentiment closed bullish, with 43 gainers led by LEARNAFRCA, CHAMPION and NCR against 23 decliners led by IMG.
NCR, NEIMETH, MORISON, JBERGER, DEAPCAP, REDSTAREX, and SCOA all traded above their 52-week highs at N141.40, N11.10, N6.22, N168.00, N4.90, N14.50 and N16.35, respectively.
On the downside, IMG recorded the steepest loss, shedding 9.95%, followed by Ikeja Hotel (-7.28%), Nigerian Breweries (-4.01%), First HoldCo (-1.92%) and GTCO (-1.57%), as investors took profit in these stocks.
