In January 2026, the NGX All Share Index rose by 6.27 per cent, ending at 165,370.40 points, as investors boosted market value by about N6.8 trillion, pushing total market capitalisation to N106.15 trillion.
This performance shows that Nigeria’s equity market has stepped into 2026 with fresh momentum, boosting expectations for a friendlier operating environment for risk assets. Market analysts say the size and scope of the rally show a clear shift in sentiment compared to the cautious mood that marked the beginning of the previous year.
This performance is a big step up from January 2025, when the market saw only modest gains. Back then, the NGX ASI climbed about 1.5 per cent to finish near 104,496 points, while market capitalisation grew by roughly N2 trillion to around N64.7 trillion. High inflation, currency market uncertainty, and tighter financial conditions dampened investor interest in early 2025. However, the stronger performance in January 2026 reflects better liquidity, growing confidence, and more favourable pricing trends.
In this context, Insidebusiness.ng has highlighted several stocks likely to be key in keeping the market’s upward momentum going in 2026, drawing on year-to-date performance in January, recent upgrades, and alignment with current market trends.
Aradel Plc stood out as a top performer in the Oil and Gas sector, climbing 16.42 per cent in January and securing a spot among the leading stocks on the NGX 30 index. The surge points to renewed optimism in energy sector reforms, stronger crude oil prices, and improved foreign exchange stability. With anticipated corporate moves and ongoing sector strength, analysts expect potential gains of another 20 to 30 per cent in the medium term.
Lafarge Africa Plc is drawing more investor interest in the industrial goods sector, with its stock climbing 15.99 per cent in January and beating key competitors. Optimism is growing thanks to anticipated infrastructure projects and fiscal stimulus. Analysts expect earnings to rise by 15 to 20 percent, and current valuations are seen as a good entry point for long-term investors.
Seplat Energy Plc is still a top pick in the Oil and Gas sector, posting a 15.34 per cent year-to-date gain in January. Its solid reserve base, export focus, and connection to global energy markets keep investor sentiment strong. Many see room for more growth from sector-wide gains and potential mergers or acquisitions, with returns possibly hitting 25 to 35 per cent if conditions are right.
Zenith Bank Plc is making waves in the banking sector, climbing 14.89 per cent in January. Backed by a solid balance sheet and its strong industry leadership, it’s well-positioned as the sector navigates recapitalisation requirements. With expectations of gradual rate cuts, increased liquidity inflows, and rising earnings, the outlook remains bright, supported by an estimated 8 per cent dividend yield and projected earnings per share growth of over 25 per cent.
In the consumer goods sector, Guinness Nigeria Plc has caught fresh attention despite a slow start to the year. Recent analyst upgrades to a Buy rating highlight stronger revenue diversification and early signs of a rebound in consumer demand. Analysts project a total return potential of 10 to 25 percent as pricing power strengthens and cost pressures begin to ease.
Market strategists say the upbeat start to 2026 comes from better macroeconomic expectations. GDP is expected to grow about 4.5 per cent this year, while inflation should ease to between 12 per cent and 15 per cent. Closer alignment between fiscal and monetary policies, along with steadier foreign exchange rates, has boosted confidence in corporate earnings and investment decisions, a big shift from the risk-heavy climate seen at the beginning of 2025.
Sector trends highlight the changing market landscape. Oil and Gas stocks topped January gains thanks to stronger crude prices and stable foreign exchange, while bank shares rose as investors factored in recapitalisation efforts and stronger balance sheets ahead of regulatory deadlines. In contrast, early 2025 saw more limited sector activity, with investors leaning toward defensive plays.
Earnings expectations for 2026 are looking more optimistic. Strong performances from banks, energy firms, and select industrial players are boosting prospects for valuation upgrades, especially with the market still trading below long-term price-to-earnings averages. Analysts also highlight major industrial activity, from refinery operations to potential new listings, as key drivers that could broaden market participation and keep momentum going.
Looking ahead, base case forecasts indicate the NGX could see returns of up to 45.9 per cent in 2026, with the All-Share Index possibly hitting or surpassing the 220,000-point mark by year’s end. Although risks tied to global geopolitical events and domestic policy implementation remain, the difference between January 2026 and January 2025 suggests a market starting the year with stronger fundamentals, wider participation, and a more defined growth story.
