By Taiye Olayemi
Lagos, Jan. 7, 2026 (NAN) – The Nigerian stock market extended its positive momentum on Wednesday, delivering a substantial N409 billion gain to investors’ collective portfolios, according to official data from the Nigerian Exchange Ltd. (NGX). This sustained bullish run underscores a period of significant capital appreciation, but a closer look reveals a more nuanced and complex trading session beneath the headline figures.
The market’s upward trajectory was primarily fueled by renewed and concentrated investor interest in a select group of high-performing stocks. Notable gainers included Okomu Oil, Union Dicon Salt, Seplat Energy, NCR Nigeria, and Mc Nicholas, alongside 30 other advancing equities. This selective buying pressure in key counters was powerful enough to drive the overall market indices higher.
Consequently, the NGX All-Share Index (ASI), the broad benchmark for market performance, rose by 0.40% or 640.68 points to close at 160,591.76, up from 159,951.08 recorded on Tuesday. Mirroring this gain, the total market capitalisation increased by the same percentage, climbing from an opening value of N102.275 trillion to settle at N102.684 trillion by the session’s end.
The Paradox of a Positive Market: Breadth Turns Negative
Despite the impressive gains in market value, a critical metric told a different story. Market breadth closed negative, with 38 decliners outnumbering 35 advancers. This divergence is a crucial insight for investors, indicating that the bullish sentiment was not broad-based. While heavyweight stocks pulled the index up, a larger number of companies faced selling pressure, suggesting underlying sectoral or stock-specific weaknesses.
On the Losers’ Side: The decline was led by Cadbury Nigeria, which shed a full 10% to close at N63.00. Other significant losers included Austinlaz (-9.93% to N5.08), Aluminium Extrusion Industries (-9.91% to N19.55), Haldane McCall (-9.85% to N4.21), and FTN Cocoa Processors (-9.62% to N6.01). This list highlights profit-taking or negative sentiment impacting consumer goods and industrial sectors.
On the Gainers’ Side: Topping the chart were Seplat Energy, Okomu Oil, and Union Dicon Salt, each recording the maximum daily gain of 10%. They closed at N6,171.00, N1,204.50, and N8.80 per share, respectively. They were closely followed by NCR Nigeria (+9.97% to N79.95) and Mc Nicholas (+9.93% to N4.76). The strength in Seplat and Okomu points to sustained confidence in the energy and agro-industrial sectors.
Analyzing Market Activity: Volume Surge Amid Fewer Deals
An analysis of trading activity revealed a significant surge in volume coupled with a slight increase in value, even as the number of individual deals declined. This pattern often suggests higher participation by institutional investors or block trades, as opposed to numerous small retail transactions.
- Volume & Value: A total of 1.44 billion shares, valued at N20.7 billion, changed hands in 49,286 deals. This compares with 758.9 million shares worth N19.9 billion traded in 54,212 deals on the previous Tuesday. The 90% jump in volume indicates much heavier trading activity.
- Volume Leader: Universal Insurance dominated volume activity, trading 804.11 million units—a staggering 55.82% of the day’s total volume. Such high volume in a single stock can sometimes indicate strategic positioning or significant news flow specific to that company.
- Value Leader: Seplat Energy led the value chart with trades worth N3.50 billion, accounting for 16.90% of the day’s total traded value. This underscores its status as a high-value, bellwether stock that attracts substantial capital.
Investor Takeaway: Wednesday’s session presents a classic case of a market being driven by a few strong performers. The negative market breadth serves as a cautionary signal, reminding investors that overall index gains can mask widespread weakness. For a sustainable bull run, a positive market breadth—where advancers outnumber decliners—is generally a healthier sign. Investors are advised to look beyond the index and assess the performance of individual sectors and holdings. (NAN) (www.nannews.ng)
PTB/KTO
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Edited by Kamal Tayo Oropo
