Oil and Gas stocks lead broad-based gains as investors push the NGX to its strongest January start in years….
The Nigerian equities market closed January 2026, the first trading month of the year, on a strong footing, posting a 6.27% gain as more than 15 billion shares changed hands on the Nigerian Exchange.
Data from the Exchange showed the All-Share Index climbed from 155,612.9 points at the start of the month to 165,370.4 points, adding 9,757.5 points and decisively crossing the 160,000 threshold for the first time.
Market momentum was strongest in the first three weeks of trading, when the index briefly rose above 166,000 points. A mild pullback in the final two weeks trimmed some of the gains but did little to alter the month’s positive outcome.
Despite the late moderation, January’s performance reflected broad participation across sectors, with gains recorded in Oil and Gas, Insurance, Banking, Industrial Goods, and Consumer Goods stocks. The rally was led by strong advances in the Oil and Gas sector.
Trading data from the Nigerian Exchange showed the Oil and Gas sector emerged as the biggest contributor to the All-Share Index in January. The NGX Oil and Gas Index rose 13.80% during the month, supported by a trading volume of more than 491 million shares.
Large-cap stocks drove much of the sector’s performance, with Aradel and Seplat gaining 16.45% and 15.34% respectively. Mid-cap stocks also recorded positive movement, including Eterna, which rose 8.25%, Japaul Gold with a 5.63% gain, and Oando, which advanced 0.75%.
The Insurance sector followed closely, as the NGX Insurance Index rose 11.76%, extending bullish momentum from December into the new year. Sector leaders included Veritas Kapital, which surged 43.27%, Mutual Benefits Assurance at 34.84%, NEM Insurance at 19.40%, AXA Mansard at 15.99%, and Consolidated Hallmark at 15.90%.
Other insurance stocks such as Linkage Assurance, AIICO, Prestige Assurance, Coronation, Regency Alliance, and Cornerstone also closed the month higher, though with gains below 15%.
The Banking sector ranked as the third-best performer in January, with the NGX Banking Index rising 6.99% on a market volume of over 3 billion shares. Among tier-one banks, Zenith Bank recorded a 15.61% gain, followed by GTCO at 9.15%, Access Holdings at 7.62%, and UBA at 6.36%.
Strong performances were also recorded by mid-tier banks, including Wema Bank, which rose 14.71%, Ecobank at 14.56%, and Stanbic IBTC at 8.00%.
Industrial Goods stocks also posted solid gains, with the sector index rising 5.45%. Large-cap stocks such as Lafarge Africa gained 16.73%, Dangote Cement rose 4.27%, and BUA Cement added 2.52%.
Mid and small-cap stocks in the sector outperformed, led by Triple Gee with a 64.93% gain, Meyer at 46.72%, Berger Paints at 25%, Cutix at 17.74%, Chemical and Allied at 15.22%, and Beta Glass at 13.51%.
The Consumer Goods sector recorded a 3.21% increase for the month. Gains in large-cap stocks such as Nigerian Breweries, which rose 4.65%, and International Breweries at 3.57%, supported the sector’s performance.
Mid and small-cap stocks delivered stronger returns, with McNichols rising 94.19%, Champion Breweries gaining 28.57%, PZ Cussons advancing 26.27%, and Vitafoam up 22.28%. Other stocks, including Nestlé, Honeywell Flour, NASCON Allied, Dangote Sugar, Unilever, and Cadbury, recorded gains of less than 20%.
Market analysts note that January’s strong showing signals sustained investor confidence following the market’s 51.19% return in 2025. The breadth of gains across key sectors points to strong demand for both large-cap and mid-cap stocks, with opportunities extending beyond traditional market leaders.
However, with the All-Share Index closing above 165,000 points for the first time, analysts also warn that the market is entering overbought territory. While January’s 6.27% gain significantly outpaced the 1.53% recorded in January 2025, a deeper pullback in large-cap stocks could trigger broader market corrections in the weeks ahead.
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