By Taiye Olayemi
Lagos, Jan. 3, 2026
The Nigerian Exchange (NGX) kicked off the new year with explosive trading activity, signaling a powerful shift in investor sentiment. This weekly review breaks down the numbers and explores the potential drivers and implications behind the surge.
A Week of Remarkable Growth
Investors traded a staggering 7.821 billion shares worth N134.471 billion across 150,799 deals this week. This performance is not just strong—it’s a dramatic leap from the previous week’s 2.876 billion shares valued at N63.832 billion in 80,229 deals. Crucially, this represents a 110.6% increase in the total value of transactions, a figure that demands a closer look beyond the headline.
Context is Key: This surge is even more impressive considering the trading week was shortened to four days due to the New Year’s public holiday. The heightened activity compressed into fewer sessions suggests intense, focused buying and selling pressure, often a hallmark of shifting market narratives or reactions to significant news flow. [[PEAI_MEDIA_X]]
Sectoral Analysis: Where Was the Action?
The market movement was not uniform. Sector leadership provides critical clues about where smart money is flowing:
- Financial Services Industry: Dominated activity, contributing 5.992 billion shares (76.61% of volume) worth N67.024 billion (49.84% of value). This heavy weighting indicates that banking and insurance stocks were primary engines of the week’s volume, possibly driven by year-end portfolio rebalancing, reactions to recent earnings forecasts, or sector-specific policy developments.
- ICT Industry: Followed with 946.959 million shares worth N8.028 billion. The sustained interest in tech stocks reflects the ongoing long-term bet on Nigeria’s digital transformation, despite global tech sector volatility.
- Consumer Goods Industry: Accounted for 258.820 million shares worth N9.381 billion. The higher value relative to volume compared to ICT suggests trading in higher-priced blue-chip consumer staples, often seen as defensive plays or inflation hedges.
Market Breadth and Index Performance
The bullish sentiment was broad-based. The NGX All-Share Index (ASI) rose by 1.92%, while Market Capitalisation grew by 2.09% to close at N99.938 trillion—nearing the symbolic N100 trillion mark.
Market breadth, a key indicator of overall health, turned strongly positive:
– Advancers: 73 equities (up from 44 last week).
– Decliners: 23 equities (down from 30).
– Unchanged: 51 equities (down from 73).
This shift shows widespread buying interest across the board, not just concentration in a few heavyweights.
Stock Spotlight: Top Movers
Top Gainers: Austinlaz, Aluminium Extrusion Industries, Eunisell Interlinked, Associated Bus Company, and Honeywell Flour Mill led the charge. The substantial gains in kobo and naira terms for these companies, particularly Eunisell Interlinked (N38.05 gain), point to possible positive company-specific news, strategic acquisitions, or heavy speculative interest in small to mid-cap stocks. [[PEAI_MEDIA_X]]
Top Losers: Etranzact International, First Holdco, Livingtrust Mortgage Bank, CAP Plc, and Champion Breweries faced downward pressure. These declines could be due to profit-taking after previous rallies, sector rotation out of these names, or negative investor reaction to recent corporate announcements.
Concentration Risk: A Note of Caution
A critical detail emerges from the data: trading in just three equities—Cornerstone Insurance Plc, Cham Holding Company Plc, and Access Holdings Plc—accounted for 5.317 billion shares, or 67.97% of the total volume. This high concentration means the overall volume figure is heavily influenced by activity in these specific counters. Investors should discern between a market-wide boom and concentrated frenzy in a handful of stocks.
Conclusion: What Does This Mean for Investors?
The 110.6% surge in transaction value is a clear signal of returning liquidity and heightened investor engagement. The positive market breadth and index appreciation suggest a robust bullish undertone for the first week of 2026. However, the concentration of volume in a few stocks and the financial services sector warrants a measured approach.
Key Takeaways:
1. Liquidity is Improving: Such a spike in turnover value makes it easier for investors to enter and exit positions.
2. Sector Rotation is Evident: Capital is moving decisively. Monitoring sectoral trends is crucial.
3. Look Beyond the Headline: Drill down into individual stock performance and news to understand the drivers behind the top gainers and losers.
4. Watch for Sustainability: The critical question for the coming weeks is whether this increased activity and positive breadth will sustain and support a continued rally, or if it represents a short-term spike.
The NGX has started 2026 with undeniable momentum. The challenge for investors will be to separate the signal from the noise in this environment of elevated activity. [[PEAI_MEDIA_X]]
(Edited by Olawunmi Ashafa) | Source: NAN
