Market Update For January 2, 2026
The Nigerian equities market opened the 2026 trading year on a positive note, as renewed investor interest in fundamentally sound stocks drove prices higher despite a subdued trading environment. Market sentiment reflected cautious optimism, with participants selectively positioning in names perceived to offer earnings resilience, balance sheet strength, and medium-term growth prospects. The tone of the session suggested a continuation of the market’s underlying bullish structure, albeit with measured participation.
Buying activity was largely concentrated in the financial services sector, where strong demand for tier-1 and select mid-tier banks underpinned overall market performance. Investors appeared to be rebalancing portfolios toward banking stocks, supported by expectations of stable earnings, improved asset quality, and attractive dividend yields. Outside banking, interest also extended to insurance and consumer-related stocks, while oil and gas names benefited modestly from selective positioning. The industrial goods sector, however, ended the session flat, highlighting a cautious stance toward capital-intensive stocks at the start of the year.
Trading activity moderated significantly, as both volume and value declined sharply compared to recent averages. This slowdown is typical of early-year trading and reflects investors’ preference for price discovery and strategic positioning rather than aggressive accumulation. Market activity was also highly concentrated, with a handful of stocks accounting for a significant share of total turnover, indicating focused institutional and high-net-worth participation. Encouragingly, several stocks closed above their 52-week highs, reinforcing confidence in the prevailing uptrend for select counters.
Technical Analysis & Market Outlook
From a technical perspective, the market maintained its bullish bias, as the benchmark index held firmly above key short-term and medium-term support levels. Price action continues to signal higher highs and higher lows, suggesting trend continuity. However, the sharp drop in traded volume points to the likelihood of near-term consolidation as investors digest recent gains. We expect intermittent profit-taking in overextended names, while pullbacks could attract bargain hunters, particularly in fundamentally strong banking, insurance, and consumer stocks. Sustained buying interest above current support levels would keep the medium-term outlook constructive.
On the global front, crude oil prices softened at the start of 2026 after recording their steepest annual decline since 2020. Persistent oversupply concerns continued to weigh on prices, even as geopolitical risks linked to Eastern Europe and renewed sanctions affecting Venezuelan exports provided some counterbalance. For the domestic market, softer oil prices could temper sentiment in energy-related equities, while broader macroeconomic considerations remain a key factor shaping investor expectations.
Market Summary
At the close of trading, the All-Share Index (ASI) advanced by 0.57% to 156,492.36 points, lifting total market capitalisation by ₦561.55bn to ₦99.94trn. Market breadth was strongly positive, with 53 gainers against 10 losers, reflecting broad-based buying interest.
Top gainers for the session included ABCTRANS, ALEX (+9.93%), FIDSON (+9.78%), ACCESSCORP (+9.52%), ARADEL (+7.51%), IKEJAHOTEL (+7.16%), HONYFLOUR (+5.02%), ZENITHBANK (+4.37%), UBA (+3.24%), WEMABANK (+1.96%), FIRSTHOLDCO (+1.88%), NGXGROUP (+1.79%), GTCO (+1.76%), PZ (+1.47%), and DANGSUGAR (+0.33%), alongside other advancing stocks.
On the downside, ABBEYBDS led the losers’ chart, followed by nine other declining stocks, as mild profit-taking emerged in a few names amid the broadly positive market close.
