NGX-ASI nears historic crossing of 160,000 points mark

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) is on the brink of crossing the 160,000-point threshold, a level the market has never attained before.

On Tuesday, the benchmark index advanced by 0.46 percent, extending its bullish run and brushing aside earlier concerns over the implementation of new tax laws that came into force on January 1, 2026. The rally lifted the ASI to 159,951.08 points, while total market capitalisation climbed further to N102.275 trillion.

Market analysts remain optimistic about the outlook for equities. In its 2026 market outlook, Meristem Research said it expects the NGX-ASI to record additional gains in the year ahead, supported by key factors likely to influence investor sentiment positively.

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According to the firm, Nigerian equities outperformed other domestic asset classes in 2025, buoyed by improved macroeconomic fundamentals, stronger corporate earnings, higher dividend payouts, and increased participation by foreign investors.

“We anticipate strong investor performance in 2026, driven by a more stable macroeconomic environment, improved credit ratings, corporate actions, ongoing reforms, and a shift in fixed-income yields,” Meristem research analysts added.

Asset managers are rebalancing their portfolio in line with index weights. The NGX had announced the results of its full-year market index review, leading to the entry and exit of some companies from several key indices with effect from January 2, 2026.

Stock traders in 53,632 deals exchanged 745,204,337 shares valued at N19.398billion.

Ahead of full year 2025 earnings season, many fund managers are actively monitoring the market for attractive entry points into fundamentally strong stocks, with potential adjustments to existing holdings to ensure their portfolio remains optimally positioned.

Entering 2026, CardinalStone research analysts said they have injected an additional N1 billion into their portfolio, a decision that was influenced by the N36.6 trillion increase in market capitalisation in 2025 “and the need not to prematurely exit key positions.”

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“The rise in market cap was primarily driven by stability in the foreign exchange market, which positively impacted companies recovering from previous foreign exchange (FX) losses. “Additionally, the improved macroeconomic environment and the Central Bank of Nigeria’s banking sector recapitalisation played a role in the increase in market cap during this period,” the analysts said.

Following the market’s crossing of N100 trillion mark on Monday, Vetiva research analysts, who expected the positive optimism to spill over into Tuesday’s session, noted that “the equities market continues to show strong bullish signals.”

“This milestone is not just about numbers; it reflects the impact of sustained reforms anchored on enhanced investor protection, market integrity, and long-term confidence,” said Emomotimi Agama, director general, SEC.

“The early-year performance of the market demonstrates how a credible and predictable regulatory environment can support liquidity, enhance market discipline, and strengthen investor confidence,” said Temi Popoola, group managing director and chief executive officer of Nigerian Exchange Group.