The Nigerian Exchange Limited (NGX) extended its positive sentiments in the first quarter of 2026 as investors posted an unprecedented gain of N29 trillion, amid sustained buying interest across key sectors and an improving macroeconomic outlook.

Data from the NGX showed that market capitalisation, which opened the year at N99.937 trillion on January 2, 2026, climbed sharply to N128.969 trillion by March 27, 2026, reflecting a remarkable increase of approximately N29 trillion or 29 per cent within the period.

The all-share index (ASI), which measures the performance of listed equities, surged from 156,492.36 points to 200,913.06 points, representing a gain of 44,420.7 points or 22.1 per cent.

The strong rally was underpinned by renewed investor confidence, buoyant corporate earnings expectations and increased participation from both domestic and institutional investors seeking higher yields in the equities market amid declining real returns in fixed income instruments.

Operators noted that the relative stability in the foreign exchange market, alongside moderating inflation expectations and improved liquidity conditions, also encouraged portfolio rebalancing in favour of equities.

They argued that the expectation of robust full-year corporate earnings, particularly from tier-one banks and large-cap industrial firms, played key roles in sustaining the upward trend.

This is in addition to increased retail participation, driven by growing financial literacy and easier access to trading platforms, which has helped to boost market liquidity.

However, the operators cautioned that while the bullish run reflects improving sentiment, it may face intermittent corrections as investors take profit and react to macroeconomic developments, including monetary policy decisions and fiscal adjustments.

They maintained that the outlook for the rest of the year remains cautiously optimistic, provided economic reforms are sustained and corporate performance continues to meet market expectations.

Sectoral performance showed that the oil and gas index emerged as the best-performing segment on the Nigerian Exchange Limited, posting a year-to-date return of 63 94 per cent, significantly outperforming the broader market.

The industrial goods index followed closely with a 55 per cent gain, reflecting strong price appreciation in cement and construction-linked counters. The ASI rose by 29.11 per cent while the banking index also recorded a solid 25.97 per cent return, buoyed by recapitalisation expectation and earnings momentum, while the consumer goods index rose by 9.42 per cent. The insurance sector trailed with a comparatively modest 8.96 per cent increase over the same period.

Former President of the NewDimension Shareholders Association of Nigeria, Eric Akinduro, attributed the bullish momentum recorded in the first quarter of 2026 to the strong fundamentals of listed companies, particularly in the manufacturing sector, noting that improved stability in the foreign exchange market and a gradual decline in inflation have further strengthened market sentiment.

He said current government policies have continued to reinforce a positive investor outlook, driving increased participation and boosting demand for manufacturing stocks.

Akinduro, however, observed that the banking sector is yet to attract significant investor interest, as market participants remain cautious due to the Central Bank of Nigeria’s policies on dividend payments.

He expressed confidence that once the ongoing recapitalisation exercise is concluded, the banking sector will play a more active role in sustaining the market’s bullish run.
He added that the attractive return on investment in equities has remained a key factor drawing investors into the market.

A look at the full year 2025 performance of listed firms showed that Dangote Cement Plc delivered one of the strongest performances on the exchange, posting a profit before tax of N1.53 trillion, representing a 109 per cent increase year-on-year.

The company also recorded a profit after tax of N1.01 trillion and revenue of N4.31 trillion, marking the first time it crossed the N1 trillion profit mark, driven by revenue growth, cost efficiency and reduced finance costs.

Similarly, Nascon Allied Industries Plc posted a pre-tax profit of N48.2 billion. This represents a 103.98 per cent year-on-year increase from N23.6 billion in 2024, driven by strong revenue growth, solid finance income, and lower costs.

The company’s full-year revenue also rose to N152.6 billion, representing a 26.83 per cent increase from N120.3 billion achieved in the corresponding period in 2024.

For MeCure Industries Plc, its audited full-year results showed a pre-tax profit of N7.93 billion, representing a 140.18 per cent increase from N3.3 billion recorded in 2024.

Its profit after tax grew by 177.5 per cent YoY, reaching N6.463 billion, while revenue for the year rose to N77.69 billion, up 68.8 per cent from N46.03 billion recorded in the previous year.

Beta Glass Plc, profit before tax rose to 155 per cent to N50.65 billion in 2025, compared with N19.9 billion the previous year.

President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, has described the Nigerian stock market’s first-quarter performance as highly commendable, citing the 29 per cent gain recorded by the Nigerian Exchange Limited as a reflection of renewed investor confidence.

He noted that the strong rally was underpinned by impressive financial results released by listed companies, which have continued to attract investor interest.

Ajudua added that with inflation trending downward and relative stability in the foreign exchange market, investor sentiment is expected to strengthen further, positioning the market for sustained growth and improved returns on investment.