Highly capitalised stocks push gain to N2 trn in October

…As investors reap N4.5trn WoW

By Peter Egwuatu

The Nigerian stock market strengthened Month-on-Month (MoM), in October 2026, as renewed buying interest in heavyweight stocks lifted the benchmark of the Nigerian Exchange, NGX Index above the 250,000-point psychological threshold.

The rally added N2.01 trillion to market capitalisation, reflecting strong price appreciation in selected large-capitalised stocks across the Industrial Goods, Financial Services and Energy sectors.

According to analysts, although the market’s upward movement suggests renewed investor confidence, the uneven distribution of gains points to a selective investment strategy.

Investors appear to be concentrating on stocks with significant market influence while maintaining a cautious approach towards other equities. This divergence between index performance and market breadth remains an important consideration in assessing the sustainability of the current rally.

Specifically, breakdown of trading in October showed that the NGX market capitalisation closed at N165.114 trillion from 163.104 trillion in September.

Similarly, the NGX All Share Index, ASI surged by 1.2% to close at 254,299.49 points from 251,211.67 points in September.

Meanwhile on Week-on-Week, WoW the market gained N4.595 trillion as market capitalisation rose from N160.519 trillion the previous week in October to close at N165.114 trillion last week while the NGX ASI rose by 2.9% from 247,222.27 points previous week to close at 254,299.49 points last week.

On the global market, the oil prices continued to record performance as the retreat in prices last week reflected a reassessment of geopolitical risks as diplomatic efforts sought to revive peace negotiations.

However, analysts noted that the outlook for oil remains sensitive to developments in the region, and renewed escalation could quickly alter market expectations.

For Nigeria, movements in crude oil prices have implications for government revenue, foreign exchange supply and broader economic expectations.

Higher oil prices can support public revenue and external balances, although their overall effect depends on production levels, domestic fuel costs and other economic conditions. Lower oil prices may ease some cost pressures but could also weaken revenue expectations if the decline is sustained. The effect on listed companies will vary according to their exposure to energy prices, foreign exchange movements, production costs and domestic demand.

On market outlook, analysts at InvestData Consulting Limited stated: “Investors should therefore consider international oil movements alongside domestic economic indicators and company-specific developments rather than treating changes in crude prices as a uniform signal for the entire equities market.

‘‘More broadly, expectations regarding interest rates, inflation, corporate earnings and foreign exchange conditions may influence portfolio allocation decisions.

‘‘Where investors anticipate improved corporate profitability and more favourable financing conditions, equities may continue to attract demand. ‘‘Conversely, uncertainty over costs, earnings and valuations could encourage profit-taking in stocks that have recorded substantial price appreciation.”

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