Stock market experts optimistic on H2’26 but warn investors
Strong Performance Does Not Eliminate Investment Risk, Experts Say
Nigeria’s Stock Market Continues to Thrive Amid Global Attention
By Peter Egwuatu, Assistant Business Editor
Nigeria’s stock market has shown remarkable resilience and growth in the second half of 2026, establishing itself as one of the top-performing markets globally. Following a recent assessment by Bloomberg, Nigeria’s market was ranked first worldwide for capital gains.
As of June 2026, the Nigerian Exchange (NGX) All Share Index (ASI) has experienced a year-to-date growth of 47.4%, climbing from 155,613.03 points at the end of December 2025 to 229,419.18 points at the mid-year mark. The market capitalization surged to N147.217 trillion from N99.376 trillion, resulting in a total investor gain of N47.841 trillion since December.
Despite a notable decline of approximately N8 trillion in late June, the market rallied back in early July, bringing the NGX market capitalization to N156.239 trillion, an increase from N148.217 trillion. The ASI rebounded further, rising by 5.6% to close at 242,366.75 points.
While the market’s upward trajectory continues, analysts emphasize the need for caution among investors.
Strong Performance Doesn’t Negate Risks
Dr. Fiona Ahimie, President of the Chartered Institute of Stockbrokers, recognized the significant capital appreciation achieved, reaffirming the role of equities as a long-term investment vehicle. However, she cautioned that strong market performance does not eliminate investment risk.
“Valuations are rising, so investors should increasingly be guided by company fundamentals, earnings quality, and long-term growth prospects,” Ahimie advised. She noted that the current market trends reflect increased investor confidence in Nigeria’s economy and ongoing reforms, which may aid in attracting additional foreign portfolio investments.
Call for Policy Vigilance
Prof. Uche Uwaleke, President of the Capital Market Academics of Nigeria, highlighted Nigeria’s emergence as a leading stock market in dollar terms, emphasizing the need for continued vigilance in policy-making. He expressed optimism about attracting foreign investments that could bolster economic stability, but cautioned against complacency.
Record Returns for Investors
Garba Kurfi, Managing Director and CEO of APT Securities Limited, noted that Nigerian investors have benefited from favorable economic policies and a stable exchange rate. He indicated that trading hours and settlement systems have also contributed to increased foreign participation.
Kurfi pointed out that investors could expect substantial returns, highlighting the impressive gains of many stocks over the past two years.
Market Outlook Remains Positive
Olatunde Amolegbe, CEO of Arthur Stevens Asset Management Limited, stated that market improvements are a response to government reforms, although he cautioned that economic growth has yet to be fully realized. He echoed the sentiment of cautious optimism, noting potential volatility linked to broader geopolitical uncertainties.
David Adonri, CEO of Highcap Securities Limited, praised the stock market’s performance while indicating that political uncertainty stemming from the upcoming 2027 elections could pose a challenge.
Recommendations for Investors
Analysts unanimously expressed that investors should proceed with caution, emphasizing the importance of a diversified portfolio, focusing on companies with strong fundamentals. They reiterated that market corrections can present opportunities for long-term investors, with the outlook for the second half of 2026 remaining constructive, provided economic fundamentals improve.
Investors are encouraged to maintain discipline and patience amid market fluctuations, as the potential for growth remains strong.
