The Nigerian equities market sustained its upward momentum for seven consecutive weeks, fuelled by strong bullish growth across all sectors last week.
The NGX All-Share Index (ASI) rose by 2.36%, closing at 166,129.50 points, up from 162,298.08 points the previous week. Market capitalisation increased to N106.35trn, up 2.48% WTD from N103.78trn the week before, partly driven by the listing of UBA’s 3.16bn ordinary shares of 50 kobo from its Right Issue on Monday, January 12, 2026, and MORISON’s 266.84m ordinary shares of 50 kobo from its private placement on Tuesday 13, 2026.
The Sectoral Index was upward-looking last week, with the NGX Oil and Gas Index increasing 5.71%, the NGX Banking Index climbing 3.45%, the NGX Insurance Index rising 1.78%, the NGX Consumer Goods Index up 1.59%, and the NGX Industrial Goods Index up 0.67%, and As a result, market sentiment weakened from 4.0x to 3.5x.
In the banking sector, Capital Bancorp has revised its recommendation for FCMB from “Buy” to “Hold”, expecting a narrower return range of -10.50% to 10.50%, down from at least 20%. Lead Capital also adjusted its recommendations, moving FIRSTHOLDCO from “Buy” to “Hold”, and upgrading WEMABANK from “Hold” to “Buy”. Meanwhile, Afrinvest and Meristem maintained their previous recommendations. Meristem has reaffirmed its “Buy” rating for UBA, indicating the stock shows growth potential without becoming overstretched, making it a favourable investment option.
In the consumer goods sector, Capital Bancorp downgraded its recommendation for NESTLE from “Hold” to “Sell”, projecting a maximum expected return of at most -10.5%. Afrinvest has similarly revised its view on NB, moving from “Accumulate” to “Hold”, with an expected return capped at 10%, reduced from 25%. It has also adjusted NESTLE’s rating from “Hold” to “Reduce”, forecasting a potential decline of up to -10%. Additionally, Afrinvest has upgraded a previous “Sell” recommendation to “Accumulate”, suggesting a return of 10% to 25%. Meanwhile, Lead Capital has upgraded its outlook on NASCON from “Hold” to “Buy”, signalling greater confidence in the company’s prospects.
Sentiment in the consumer goods sector was further supported by a positive corporate development, as Champion Breweries Plc announced the successful redemption of its N4.21bn Series 1 Commercial Paper, supporting operations and strengthening the company’s financial position
Analysts from Capital Bancorp, Afrinvest, Meristem, and Lead Capital have sustained their previous stock recommendations in the industrial goods sector. A significant number continue to issue “Buy” ratings, reflecting strong confidence in the growth potential of these companies, while a smaller portion maintain “Hold” ratings, indicating steady stocks that may not have as much immediate growth.
In the oil and gas sector, Meristem has adjusted its recommendation for SEPLAT from “Buy” to “Hold”. They anticipate a modest upside of around 5.98% in the share price but deem this gap too narrow to warrant new investments. Lead Capital, on the other hand, continues to recommend a “Buy” for SEPLAT.
While the market remains bullish, investors should seek selective opportunities across sectors. By aligning portfolios with recent analyst recommendations, they can enhance upside potential while managing risk (see Table 1 below).
Table 1:
Disclaimer
This stock recommendation is prepared based on research, market information, and data gathered and analysed with the best global practices. This information is provided for educational and informational purposes only.
It does not constitute investment advice, a recommendation to buy or sell any security, or an offer to solicit any transaction. Nothing herein shall create a client-advisor relationship between the reader and our Firm, its analysts, or any associated companies.
You should not construe any of this information as a substitute for investment financial advice. We are not registered investment advisors; therefore, you should consult a qualified financial advisor before making any investment or trading decision. See our Terms of Use.
