Kayode Tokede
On the back of improved economic indicators in Nigeria, the overall market capitalisation of all listed securities on the Nigerian Exchange Limited (NGX) recorded a staggering gain of N51.6 trillion in the half year ended June 30, 2026.
The tradable securities that closed 2025 at N149.74 trillion, gained or 34.45 per cent to close June 30, 2026 at N201.3 trillion.
The securities are Bonds, equities and Exchange Traded Funds (ETF).
The Nigerian economy since 2025 has witnessed stability in the foreign exchange market, companies recovering from foreign exchange losses, improved liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment. Also, the Central Bank of Nigeria (CBN) banking sector recapitalisation and insurance sector reforms have played a critical role in overall market capitalisation growth.
Of the N201.3 trillion overall market capitalisation as of June, 2026, the equities market section contributed nearly 73 per cent to N146.8 trillion, followed by debt instruments that contributed 27.03 per cent to close at N54.4 trillion.
In addition, the EFT segment contributed 0.03 per cent to N58.3 billion as of June 2026.
THISDAY analysis of trading numbers showed that the equities market that closed for trading at N99.18 trillion in 2025, gained 48.6 per cent YtD to close at N146.86 trillion as of June 30, 2026.
While the debt market of the NGX closed June 30, 2026 at N54.4 trillion, which is about 7.72 per cent YtD increase over N50.51 trillion in 2025, ETF market moved from N42.85 billion in 2025, to N58.3 billion, representing an increase of 36.01 per cent YtD
The equities market section continues to dominate transactions on NGX amid foreign investors taking advantage of the foreign exchange reforms by the CBN and the National Pension Commission (PenCom) recent upward revision to the permitted allocation to ordinary shares for RSA Funds I, II, III and VI-active.
The surge in local investors’ confidence and impressive corporate earnings by listed companies have also boosted gains.
Corporate earnings also played a pivotal role with major fundamental companies declaring impressive earnings with MTN Nigeria Communications Plc, Nigerian Breweries Plc, among others migrating to profitability.
In the period under review, several stocks listed on the NGX have recorded strong month to date appreciation, reflecting heightened foreign investor confidence driven by improved macroeconomic indicators and robust corporate earnings.
For the capital market to sustain its growth momentum, capital market analysts tasked stakeholders to continue stable and credible economic policies.
The MD/CEO, Globalview Capital Limited, Aruna Kebira, in a chat with THISDAY said the stock market has shown a resilient and generally positive performance despite some volatility and economic headwinds.
He listed banking sector recapitalisation, corporate earnings, inflation moderation and investor confidence and increased transaction volume as the major drives of the stock market.
On expectation for the remaining of 2026, he said the outlook for the Nigerian stock market remains cautiously optimistic, with several factors that include, continued impact of reforms, banking sector momentum; half year earnings season, regulatory reforms and fixed income market stability:
On his part, the Chief Executive Officer of HighCap Securities Limited, David Adonri, said 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 had 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.
