Stock market gains N6.7trn as oil prices rally

The Nigerian stock market closed January 2026 on a strong note, recording capital gains of over N6.7 trillion as rising global oil prices boosted investor confidence and lifted energy-linked equities.

Data from the Nigerian Exchange Limited showed that market capitalisation increased from N99.376 trillion at the end of December 2025 to N106.153 trillion at the close of trading last Friday, reflecting a N6.77 trillion gain.

Similarly, the NGX All-Share Index rose by 6.3 per cent to 165,370.50 points from 155,613.03 points, indicating broad-based appreciation in share prices.

Analysts attributed the rally to expectations of improved full-year 2025 corporate earnings and renewed interest in fundamentally strong and momentum-driven stocks.

The bullish sentiment also coincided with a surge in crude oil prices. Brent crude futures climbed 3.8 per cent to about $71.01 per barrel, while West Texas Intermediate rose four per cent to $65.75 per barrel, driven by geopolitical tensions in the Middle East.

Market watchers said sustained strength in oil prices could support Nigeria’s fiscal revenue outlook and encourage investment in upstream and energy-related stocks, creating a positive spillover for the broader market. However, they noted that higher crude prices could also translate into increased pump prices for consumers, potentially eroding purchasing power.

Despite the strong monthly performance, the market ended last week slightly negative as investors digested a limited number of full-year earnings releases. Profit-taking in some heavyweights weighed on performance, with MTN declining 1.4 per cent, First Holdco losing 8.2 per cent, and Dangote Sugar shedding 2.4 per cent.

The losses outweighed gains recorded by stocks such as Sky Aviation, which rose 28.7 per cent, ABBEYBDS, up 32.4 per cent, and NAHCO, which gained 9.1 per cent. Consequently, the All-Share Index slipped 0.1 per cent week-on-week, while year-to-date returns settled at 6.3 per cent.

Trading activity also weakened, with volume down 1.0 per cent and value declining 4.2 per cent week-on-week.

Sector performance was mixed. The Insurance Index advanced 0.8 per cent, Consumer Goods gained 0.7 per cent, while Industrial Goods and Oil and Gas rose marginally by 0.1 per cent each. The Banking Index was the only laggard, slipping 0.6 per cent.

Looking ahead, analysts at Cordros Capital said the market may remain volatile as investors continue to assess the remaining batch of 2025 earnings reports, which are expected to influence short-term sentiment.

InvestData Consulting added that trading remained concentrated in select counters, with both institutional and retail investors showing cautious optimism, particularly toward mid-cap and energy-related stocks.