Market Update For January 7, 2026
The Nigerian equities market sustained its upward momentum on Wednesday, extending the recent rally as investors continued to deploy funds into select large- and mid-cap stocks with strong price action and improving fundamentals. Trading remained highly selective, reflecting a market that is still constructive but increasingly discerning, as participants weigh near-term profit-taking risks against expectations of solid corporate earnings and sector-specific tailwinds.
Investor interest was largely concentrated in energy, industrial, and consumer-facing stocks, where recent earnings performance, balance sheet strength and positive price momentum have continued to attract demand. While pockets of selling pressure emerged in some counters, these were largely offset by sustained accumulation in a handful of bellwether names, keeping the broader market on an upward path.
A notable feature of the session was the growing number of stocks breaking above their 52-week highs, a development that reinforces the bullish technical narrative. OKOMUOIL, SEPLAT, NCR, MCNICHOLS and MULTIVERSE all closed above key resistance levels, suggesting strong institutional participation and follow-through buying. Historically, such breakouts often signal the start of a new price discovery phase, although they also heighten the likelihood of short-term pullbacks as momentum traders take profits.
Market activity strengthened markedly, underscoring renewed participation despite the narrow breadth. Total volume traded surged by 89.81% to 1.44bn shares, valued at ₦20.69bn across 49,286 transactions. UNIVINSURE accounted for more than half of total volume traded, highlighting speculative interest in low-priced stocks, while SEPLAT led the value chart, reflecting continued appetite for fundamentally strong, high-capitalisation stocks. ARADEL and ZENITHBANK also recorded sizable value trades, pointing to steady positioning in stocks with relatively defensive earnings profiles. LINKASSURE and ACCESSCORP featured prominently on the volume table, further illustrating the market’s selective but active trading pattern.
Technical Analysis and Near-Term Outlook
From a technical perspective, the market remains in a short-term uptrend, supported by rising volumes and sustained closes above key support levels. The index continues to trade comfortably above its short- and medium-term moving averages, suggesting that bullish momentum is still intact. However, the persistent negative market breadth signals underlying caution and the possibility of a consolidation phase. In the near term, the market may oscillate as investors lock in gains from recent rallies, particularly in stocks that have recorded sharp price increases. Nonetheless, any pullback is likely to be mild and viewed as a buying opportunity, provided macro conditions remain stable and earnings expectations are met.
Macro and Global Market Considerations
On the global front, sentiment in the energy market turned cautious as crude oil prices extended their decline. Brent crude eased to around $60.56 per barrel, while WTI slipped to about $56.77 per barrel, pressured by expectations of ample global supply. Reports suggesting a potential increase in Venezuelan crude exports to the United States reinforced concerns about oversupply, overshadowing geopolitical risks. For the Nigerian market, sustained weakness in oil prices could temper sentiment in energy stocks over the medium term, even as company-specific fundamentals continue to drive short-term performance.
Market Performance
At the close of trading, the All-Share Index (ASI) gained 0.40% to 160,591.76 points from 159,951.08 points, while market capitalisation increased by ₦409.66bn to ₦102.68trn. Market breadth remained negative, with 33 gainers against 38 losers, highlighting continued selectivity. Top gainers included OKOMUOIL (+10.00%), SEPLAT (+10.00%), NCR (+9.97%), ETERNA (+9.90%) and NEM (+6.29%), while CADBURY led the losers alongside other declining stocks.
