Market Update For January 20, 2026
The Nigerian equities market closed slightly higher on Tuesday, snapping a short losing streak as renewed bargain hunting lifted select stocks across key sectors. The session was characterised by cautious accumulation rather than broad-based buying, reflecting a market still searching for clear direction amid mixed domestic and global signals. Nonetheless, improved participation levels suggested growing investor interest at current price levels.
Early trading was largely mixed, but sentiment improved as buying interest picked up in insurance and oil & gas counters. Several mid-cap stocks recorded strong price advances, while gains in a few large-cap names helped stabilise the benchmark index. However, profit-taking in some tier-one banking stocks limited the overall upside, keeping the market within a narrow trading range.
Sectoral performance reflected this cautious tone. The insurance sector emerged as the best performer, supported by sustained demand for undervalued names and expectations of improved earnings outlooks. Oil & gas stocks also closed higher, tracking movements in the global crude market and benefiting from selective accumulation in energy-linked equities. In contrast, the banking sector ended the session in negative territory as investors pared positions in some heavily weighted stocks, while consumer goods stocks closed marginally lower, reflecting soft demand and lingering concerns over cost pressures.
From a technical perspective, the market’s modest rebound indicates that short-term support levels remain intact following the previous session’s decline. The index continues to trade above its near-term support zone, suggesting limited downside risk in the immediate term. However, momentum indicators remain subdued, pointing to ongoing consolidation. The inability of the market to sustain a decisive move above key resistance levels underscores the likelihood of continued sideways trading in the near term, unless supported by strong earnings releases or a meaningful improvement in liquidity.
Oil Market Update
Global crude oil prices traded higher during the session, offering a supportive backdrop for domestic oil & gas stocks. Brent crude advanced by 0.77% to $64.43 per barrel, while U.S. West Texas Intermediate (WTI) rose by 0.94% to around $60.00 per barrel. Price gains were underpinned by firmer global growth expectations, a softer U.S. dollar, and continued monitoring of geopolitical developments linked to renewed tariff threats. While concerns around potential trade tensions persist, analysts note that near-term oil market fundamentals remain relatively balanced, providing some support for prices and energy-related equities.
Improved oil prices also helped reinforce sentiment in local energy stocks, particularly as investors position ahead of potential earnings updates and dividend expectations within the sector. However, market participants remain mindful of external risks, including geopolitical uncertainty and global policy shifts, which could influence oil price volatility in the medium term.
Outlook
Looking ahead, we expect the Nigerian equities market to remain largely range-bound in the near term, with performance driven by sector rotation and stock-specific positioning. Bargain hunting is likely to persist in fundamentally sound and undervalued stocks, particularly within the insurance and oil & gas sectors. However, intermittent profit-taking in banking stocks, coupled with cautious sentiment in consumer goods, may continue to cap overall market gains.
We also expect trading activity to remain elevated as investors rebalance portfolios ahead of earnings releases and in response to macroeconomic developments. A clearer directional trend may emerge once the market either breaks above key resistance levels or retraces towards stronger support zones.
Market Snapshot:
The All-Share Index (ASI) gained 0.09% to close at 166,112.50 points, while market capitalisation increased by ₦10.90bn to ₦106.34trn. Market breadth was positive, with 43 gainers against 23 decliners. Top gainers included Learn Africa (+10.00%), NCR (+9.97%) and Champion Breweries (+8.83%), while the top losers were led by IMG (-9.95%), Jaiz Bank (-9.87%) and FTN Cocoa (-8.44%).
