The Nigerian Exchange Limited (NGX) sustained its positive sentiments in the first quarter (Q1) of 2026 as investors posted a gain of N29.83 trillion.

According to data obtained from the NGX, the market capitalisation, which opened the year at N99.38 trillion, moved to N129.21 trillion by March 31, 2026, reflecting a remarkable increase of approximately N29.83 trillion within the period.

The market capitalisation had hit the N100 trillion mark in early January 2026, buoyed by renewed investor demand and broad-based gains across listed stocks.

In February 2026, it crossed historic N120 trillion mark to close at N122 trillion, over repricing rally in Dangote Cement Plc and MTN Nigeria Communication Plc.

THISDAY learnt that the market capitalisation of all listed companies crossed the N130 trillion mark in March over surge investors’ demand for listed stocks quoted on the NGX.

It closed March 2026, with an increase of N5.45 trillion in one month from N123.76 trillion it closed for trading February 2026.

The latest milestone highlights the sustained momentum in Nigeria’s stock market, which continues to attract growing interest from both domestic and institutional investors.

The Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola described the milestone as a sign of growing confidence in Nigeria’s capital market.

He added that, “Nigeria’s ongoing reforms are strengthening domestic capital formation, and the market is responding positively.

“Increased participation by local investors, improving corporate fundamentals, and continued market modernisation are reinforcing the role of the capital market as a catalyst for long-term wealth creation and sustainable economic growth.”

The NGX All-share index (ASI), which measures the performance of listed stocks , surged from 155,613.03 basis points, which was about 45,674.75 basis points or 29.35 per cent growth, to the 201,287.78 basis points it closed for trading on Tuesday.

Sectoral performance showed that the oil and gas index emerged as the best-performing segment on the Exchange, posting a year-to-date return of 64.22 per cent to 4,385.20 basis points, significantly outperforming the broader market.

The NGX Industrial goods index followed closely with a 54.6 per cent YtDgain to 8,775.98 basis points, reflecting strong price appreciation in cement and construction-linked counters.

The NGX banking index also recorded a solid 22.8 per cent YtD return to 1,860.75 basis points, buoyed by recapitalisation expectation and earnings momentum, while the NGX consumer goods index rose by 9.66 per cent YtDto 4,359.85 basis points.

In addition, the NGX insurance sector trailed with a comparatively modest 3.54 per cent YtD increase over the same period.

The strong rally in Q1 2026 was on the backdrop of renewed investor confidence, impressive 2025 financial year corporate earnings by listed companies and increased participation from both domestic and institutional investors seeking higher yields in the stocks market over declining real returns in fixed income instruments.

Analysts noted that the relative stability in the foreign exchange market, alongside moderating inflation expectations and improved liquidity conditions, also encouraged portfolio rebalancing in favour of equities.

They argued that the expectation of robust full-year corporate earnings, particularly from tier-one banks and large-cap industrial firms, played key roles in sustaining the upward trend.

This is in addition to increased retail participation, driven by growing financial literacy and easier access to trading platforms, which has helped to boost market liquidity.

However, the operators cautioned that while the bullish run reflects improving sentiment, it may face intermittent corrections as investors take profit and react to macroeconomic developments, including monetary policy decisions and fiscal adjustments.

They maintained that the outlook for the rest of the year remains cautiously optimistic, provided economic reforms are sustained and corporate performance continues to meet market expectations.

The MD/CEO, Globalview Capital Limited. Mr. Aruna Kebira, attributed the bullish momentum recorded in the first quarter of 2026 to the strong fundamentals of listed companies, particularly in the manufacturing sector, noting that improved stability in the foreign exchange market and a gradual decline in inflation have further strengthened market sentiment.

He said current government policies have continued to reinforce a positive investor outlook, driving increased participation and boosting demand for manufacturing stocks.

Kebira, however, observed that the banking sector was yet to attract significant investor interest, as market participants remain cautious due to the Central Bank of Nigeria’s policies on dividend payments.

He added that the attractive return on investment in equities has remained a key factor drawing investors into the market. (Arise News)

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