Amid High Interest Rates, NGX Investors Gain N6.59tn In January

… Banking, Consumer Good Stocks Lose Steam

The Nigerian equities market opened the 2026 trading year on a bullish note, delivering an estimated N6.59trn in capital gains to investors in January, despite persistent macroeconomic challenges including elevated inflation, foreign exchange volatility and lingering political uncertainties.

Data from the Nigerian Exchange Limited (NGX) seen by THE WHISTLER showed that the benchmark All-Share Index (ASI) advanced by 6.37 per cent month-to-date, rising from 155,613.03 points at the beginning of the year to 165,527.31 points at the close of January.

In tandem, total market capitalisation expanded from N99.38trn to N105.97trn, underscoring renewed investor appetite for equities as a hedge against inflationary pressures.

Market analysts attributed the strong start to the year to a combination of government policy reforms, accommodative monetary conditions, and increased participation by domestic investors, which helped offset concerns around macroeconomic instability and global uncertainties.

Commenting on performance outlook, Chairman of NGX Group Plc, Dr. Umaru Kwairanga, said the rally highlights the critical role of regulatory clarity, predictable policies and a stable macroeconomic environment in sustaining long-term growth in the capital market.

He noted that the Exchange’s 2026 agenda is anchored on coordinated reforms involving investors, issuers, regulators and market operators, aimed at deepening liquidity, strengthening market integrity and enhancing overall resilience.

Kwairanga also urged investors to adopt long-term and diversified investment strategies to support capital stability, while drawing attention to the expanding role of technology in improving market access and broadening investor participation.

In addition, he stressed that environmental, social and governance (ESG) considerations have become increasingly central to attracting global capital and reinforcing investor confidence.

Echoing this view, Group Managing Director and Chief Executive Officer of NGX Group, Mr. Temi Popoola, reaffirmed the Exchange’s commitment to sustaining market momentum through deeper collaboration across the financial ecosystem.

“As we look ahead to 2026, NGX Group remains focused on deepening partnerships with regulators, issuers, market operators, policymakers and the wider financial ecosystem to sustain this momentum,” Popoola said.

“We are optimistic about the opportunities ahead and committed to positioning the Nigerian capital market as a key driver of economic growth and wealth creation, while advancing NGX Group’s vision as Africa’s preferred exchange hub.”

Popoola added that ongoing technological investments have enhanced transparency, operational efficiency and access to the market, further strengthening NGX’s role in driving economic growth across the continent.

Meanwhile, trading activity moderated toward the end of the month. In the final week of January, investors exchanged a total of 3.087 billion shares valued at N81.51bn in 222,185 deals, compared with 3.748 billion shares worth N99.87bn traded in 237,179 deals in the preceding week, reflecting a slowdown in turnover.

Despite the softer trading volumes, market capitalisation edged higher, indicating mixed investor sentiment across sectors. The NGX All-Share Index dipped marginally by 0.09 per cent to close the week at 165,370.40 points, while total market capitalisation rose by 0.18 per cent to N106.15trn, supported by gains in select stocks.

A sectoral breakdown showed largely mixed performance. The NGX 30 Index declined by 0.13 per cent, while the NGX Consumer Goods Index fell by 0.63 per cent. The NGX Premium Index shed 0.75 per cent, the NGX Banking Index dropped 0.63 per cent, and the NGX Pension Index depreciated by 0.41 per cent. Similarly, the NGX Growth Index declined by 1.13 per cent, while the NGX Pension Broad Index eased by 0.22 per cent.

In terms of activity by sector, the Financial Services Industry dominated trading by volume, recording 1.495 billion shares valued at N33.92bn in 83,939 deals, accounting for 48.45 per cent of total equity turnover volume and 41.62 per cent of total value for the week.

The Services Industry followed with 443.22 million shares worth N4.94bn in 17,615 deals, while the ICT sector ranked third, with 279.52 million shares valued at N6.44bn across 24,552 deals.

Trading was concentrated in a small number of equities, notably Veritas Kapital Assurance Plc, Cutix Plc and Secure Electronic Technology Plc, which together accounted for 513.38 million shares worth N1.14bn in 4,895 deals.

These stocks represented 16.63 per cent of total market volume but just 1.40 per cent of total market value, reflecting activity in relatively low-priced equities.

Market breadth weakened during the week, pointing to increased selling pressure. A total of 44 equities recorded price appreciation, down from 58 gainers in the previous week, while 49 equities declined, compared with 40 losers earlier. Meanwhile, 55 stocks closed unchanged, higher than the 50 flat stocks recorded a week before.

Overall, market activity in the final week of January reflected a more cautious trading atmosphere, as investors balanced selective bargain hunting with profit-taking amid lower volumes and mixed sectoral performances, even as the broader market retained its strong start to 2026.

Amid High Interest Rates, NGX Investors Gain N6.59tn In January is first published on The Whistler Newspaper