Improved confidence in the ongoing economic reforms has continued to stimulate investors’ appetite for stocks as investors gained N46.6 trillion in the first half (H1) of 2026.

A review of market performance within the period showed that the market capitalisation, which stood at N99.937 trillion when trading resumed for the year on January 2, 2026, rose by N46.6 trillion, to close at N146.56 trillion on Monday, June 29, 2026.

Similarly, the NGX All-Share Index (ASI), which measures the performance of quoted companies, appreciated by 71, 909.56 basis points, representing a 45.95 per cent increase from 156,492.36 points to 228,401.92 points.

This achievement is one of the strongest Nigerian Exchange Limited (NGX) first-half performances in the last six years. This impressive performance is despite increased market volatility towards the end of June, with investors taking profits in several highly capitalised stocks to recoup their investment after months of sustained gains.

The rally was so strong that the stock market crossed the N160 trillion market capitalisation mark in May, the highest level ever recorded on the exchange before profit-taking took a toll on the market value in June.

Operators linked the strong first-half performance of the Nigerian Exchange to a combination of positive economic and market factors.

For instance, they pointed to impressive corporate earnings released by many listed companies, growing investor confidence in the Federal Government’s economic reforms, expectations surrounding the banking sector recapitalisation programme and increased participation by domestic institutional investors.

According to them, renewed interest from foreign portfolio investors, improved liquidity in the financial system and sustained demand for fundamentally strong stocks helped fuel the rally. They also noted that the relative stability of the foreign exchange market, easing inflation expectations and investors’ search for higher returns also encouraged more funds to flow into equities.

The operators added that as returns on some fixed-income securities became less attractive, many investors shifted their portfolios to the stock market, further strengthening buying interest across key sectors of the Exchange.

Recall that the market returned 18.96 per cent in the first half of 2023 as investors responded positively to economic reforms and renewed confidence in equities. The rally strengthened in the first half of 2024, with the ASI rising 33.81 per cent following strong corporate earnings and sustained buying in banking and other blue-chip stocks.

However, the momentum slowed in the first half of 2025, when the market posted a 16.57 per cent return and investors’ wealth increased by about N13.2 trillion.

The impressive 48.28 per cent return and N48.97 trillion increase in market capitalisation recorded in the first half of 2026 represent a significant improvement over the performances recorded in the past three years.

The improved performance also reflected on the sectoral performance during the period as the oil and gas sector emerged as the best-performing index for much of the first half with a 90.3 per cent gain, supported by strong buying interest in major energy stocks including Aradel Holdings, Seplat Energy and Oando.

Industrial goods followed closely as investors accumulated shares of cement manufacturers, causing the sector to rise by 79.72 per cent, while banking stocks maintained a strong upward trend on the back of recapitalisation expectations and impressive earnings, with a 40.53 per cent gain. Consumer goods stocks also recorded healthy gains as investors responded positively to improving corporate performance and expectations of stronger consumer spending, adding 16.3 per cent

Aradel Holdings delivered one of the strongest first-quarter performances on the exchange with N728.5 billion revenue, representing a 265 per cent increase from N199.9 billion in the corresponding period of 2025. The company also posted N120.3 billion profit after tax, up 252 per cent from N34.2 billion posted in the previous year.

Also, BUA Cement Plc achieved a pre-tax profit of N192.88 billion in its unaudited result for Q1 ended March, up from N99.7 billion in Q1 2025. In addition, Dangote Cement Plc also achieved a profit before tax of N421.1 billion for Q1 2026, representing a 35 per cent increase from N311.9 billion in Q1 2025.

President of the NewDimension Shareholders Association of Nigeria, Patrick Ajudua, has attributed the renewed momentum in the Nigerian stock market to recent market reforms, particularly the introduction of the T+1 settlement cycle.

Ajudua recalled that the decision to migrate to the T+1 settlement system has become a major driver of market liquidity, noting that the reform has strengthened investor confidence and encouraged increased trading activities, especially in fundamentally strong and active stocks.