Stock Investors Gain N47.84trn In H1 2026 Despite June’s Volatility

Investors on the Nigerian stock market recorded strong returns in the first half of 2026, with market capitalisation gaining N47.842 trillion despite volatility in the final month of the period.

Analysts said equities trading concluded the first half (January to June) with notable positivity, propelled by a surge in investor confidence directed towards listed corporations.

The market capitalisation increased by N47.842 trillion, from N99.376 trillion at the beginning of the year to N147.218 trillion as of June 30, 2026. Similarly, the Nigerian Exchange (NGX) Limited All-Share Index (ASI) rose by 47.43 per cent from 155,613.03 points on December 31, 2025 to 229,419.18 points on June 30, 2026.

The gains in H1 2026 mark one of the strongest half-year performances in recent years for the NGX, driven largely by price appreciation in banking, consumer goods, industrial and oil & gas stocks.

Market analysts attributed the rally to improved corporate earnings expectations, high yields on fixed income assets that drew liquidity into the market, and investor positioning ahead of H2 earnings season.

However, the final month of the half-year was marked by volatility and profit-taking, with the equities market closing the month on a bearish note, down N13.291 trillion. Traders said the pullback reflected risk-off sentiment as investors reassessed positions ahead of the second half.

Despite the late-month decline, the N47.842 trillion gain underscores continued investor confidence in the Nigerian equities market, even amid challenging economic conditions.

Speaking on market performance, the managing director of Globalview Capital Limited, Aruna Kebira stated that “up until around May, notably during the fourth quarter of 2025 and to the first quarter of 2026, the market showed positive trends.

As we approached May, there was anticipation for dividends, but once the dividends were adjusted, the impact of losses from the first quarter prompted a wave of profit-taking.”

He explained that “this profit-taking was particularly pronounced throughout June. It is important to recognize that the decline in prices was not solely due to the positioning in the Strait of Hormuz for many investors. While this did influence oil and gas stock prices, the underlying issue was a general lack of new developments in the market during June.”

Kebira added that “with the conclusion of the second quarter and results not anticipated until late July, including last week, market activity slowed. Additionally, interest rates in the money market were relatively high, at around 16 per cent or more, which led to a shift of capital from capital markets to money markets. This shift was further exacerbated by government borrowing, resulting in sustained rates above 16 per cent for 365 days.”

He pointed out that, despite the bearish trend in June, the market still recorded a 47 per cent increase overall.

On market outlook, the chief executive officer of HighCap Securities Limited, David Adonri, said that Nigeria’s stock market is expected to stage a mild recovery in the second half of 2026, supported by improving corporate fundamentals and sustained macroeconomic reforms, despite persistent high interest rates and mounting political and economic risks.

Adonri projected that the equities market would gradually regain momentum as investors respond to stronger corporate earnings, improved economic indicators and growing confidence in Nigeria’s reform agenda.

He, however, cautioned that inflationary pressures, the build-up to the 2027 general elections, insecurity, simultaneous capital-raising exercises and the ongoing conflict in the Gulf region could pose significant downside risks to market performance in the months ahead.

According to him, the recent correction witnessed on the Nigerian Exchange should not be interpreted as a sign of structural weakness in the capital market but rather as a normal phase of institutional portfolio repositioning following the strong rally triggered by economic reforms.