By Taiye Olayemi
Lagos, Jan. 9, 2026 (NAN) – Investor confidence surged for a second consecutive day, propelling the Nigerian Exchange (NGX) to a significant gain of N953 billion in market capitalisation on Thursday. This sustained rally signals a potentially robust start to the year, driven by a combination of strategic bargain hunting and optimistic forecasts for corporate earnings.
The market’s upward momentum was broad-based, with positive sentiment fueled by notable price appreciations in key stocks. Leading the charge were Industrial and Medical Gases, McNicholas, SCOA Nigeria, May and Baker, and FTN Cocoa Processors, alongside 43 other advancing equities. This widespread gain suggests the rally is not isolated to a single sector but reflects a broader improvement in market psychology.
The benchmark All-Share Index (ASI), a critical indicator of overall market performance, mirrored the bullish trend. It rose by 0.93%, gaining 1,491.52 points to close at 162,298.08, up from 160,806.56 recorded on Wednesday. More importantly, the market capitalisation—representing the total value of all listed companies—climbed from N102.822 trillion to N103.775 trillion. This N953 billion increase directly translates to enhanced portfolio values for investors.
Understanding Market Breadth and Sectoral Drivers
The day’s trading activity presented a classic picture of a bullish session. Market breadth, which compares the number of gaining stocks to losers, closed decisively positive. With 48 gainers outpacing 28 losers, the data indicates widespread buying interest rather than a rally concentrated in a few heavyweight stocks. This is often viewed as a healthier and more sustainable sign of market strength.
Top Performers and Notable Decliners
The gainers’ table was dominated by stocks hitting their maximum daily price movement limit. Industrial and Medical Gases, SCOA Nigeria, and McNicholas each recorded a 10% gain, closing at N35.20, N9.35, and N5.50 respectively. May & Baker followed closely with a 9.92% rise to N28.80, and FTN Cocoa Processors advanced 9.90% to N6.66 per share. These moves often attract momentum traders and can create a positive feedback loop in the short term.
On the flip side, profit-taking and sector-specific headwinds led to declines for some equities. Aluminium Extrusion Industries led the laggards, falling 9.91% to N19.10. It was followed by Austinlaz (-9.83% to N4.13), Sovereign Trust Insurance (-9.63% to N3.38), Prestige Assurance (-9.57% to N1.70), and UPDC (-9.09% to N5.00).
Trading Volume and Liquidity Insights
A total of 624.1 million shares, valued at N18.5 billion, exchanged hands in 43,816 deals. While the volume of shares traded was slightly lower than the previous session’s 645.1 million, the value of transactions increased from N16.4 billion to N18.5 billion. This suggests investors were trading higher-value stocks or that prices had risen sufficiently to boost the total monetary value, indicating strong liquidity and institutional interest.
Market analysts attribute the sustained rally to “renewed bargain hunting and sustained optimism over corporate earnings prospects.” The “bargain hunting” likely refers to investors identifying undervalued stocks following any year-end or pre-holiday dips, while “earnings optimism” points to expectations of strong financial results from listed companies in the upcoming reporting season. This combination of technical (price-based) and fundamental (earnings-based) factors is a powerful driver for market advances.
Broader Implications for Investors
For retail and institutional investors, a two-day rally of this magnitude reinforces the importance of market timing and sector rotation. The positive breadth suggests opportunities may exist beyond the usual blue-chip stocks. However, the sharp declines on the losers’ side also serve as a reminder of market volatility and the risk of concentrated positions. As the bull run extends, monitoring for overbought conditions and diversifying across both gaining and potentially undervalued sectors will be crucial for managing risk and capitalizing on growth.
PTB/KTO
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Edited by Kamal Tayo Oropo
