July 5 (THEWILL) — Nigeria’s stock market generated N47.84 trillion in investor wealth in the first half of 2026, but the headline performance masked a sharp shift in market leadership. While June’s correction erased N13.29 trillion in market value and weighed heavily on banking and other heavyweight stocks, several mid-cap counters continued to post triple-digit returns, emerging as the market’s strongest performers.
The Nigerian Exchange (NGX) All-Share Index opened the year at 155,613.03 points before rallying to an all-time high of 252,508.00 points in May. By the close of trading on June 30, the benchmark index had retreated to 229,419.18 points, following an 8.28 percent decline during the month. Despite the correction, the market still delivered a 47.43 percent return over the first six months of the year.
Market capitalisation followed a similar trajectory. Investor wealth rose from N99.38 trillion at the beginning of January to a record N160.51 trillion in May before easing to N147.22 trillion at the end of June, translating to a net gain of N47.84 trillion during the half-year.
Despite the headline gains, the rally became increasingly selective as the half-year progressed. Early momentum was driven largely by banking, energy and industrial heavyweights, but the sharp correction in June revealed that investors were no longer rewarding the market uniformly. Capital increasingly gravitated toward companies with stronger earnings momentum, limited foreign exchange exposure, and business models anchored on domestic demand, resulting in a widening performance gap between blue-chip counters and several mid-cap equities.
The sectoral performance showed that the rally was far from uniform. The NGX Oil and Gas Index led all sectors with a return of 88.4 percent, supported by stronger earnings from upstream operators and higher energy prices.
The Consumer Goods Index advanced 51.2 percent, despite persistent pressure from foreign exchange costs and elevated energy expenses. Industrial Goods returned 39.6 percent, driven largely by cement producers during the early months of the rally before momentum slowed in June.
Insurance stocks gained 34.1 percent as investors positioned ahead of the sector’s recapitalisation programme.
The Banking Index significantly underperformed the broader market, returning just 5.27 percent during H1 as investors priced in the impact of the Central Bank of Nigeria’s recapitalisation programme, the 45 percent Cash Reserve Ratio, and concerns over equity dilution arising from multi-billion-naira capital raises.
The disparity became even more pronounced during the June sell-off. While heavyweight banking and industrial counters accounted for much of the decline in the benchmark index because of their larger market capitalisation, many mid-cap companies either held their gains or continued advancing. The result was that broad market weakness masked the resilience of a growing segment of domestically focused companies whose share prices continued to outperform despite the correction.
The divergence became even clearer when the year’s best-performing stocks were examined.
Seven of the ten best-performing equities on the NGX during H1 were mid- or small-cap companies.
Zichis Agro Allied Industries topped the performance chart after its share price climbed from N1.09 at the beginning of the year to N24.20 by the end of June, representing a return of 1,116.08 percent. SCOA Nigeria followed with a gain of 365.49 percent, while Fortis Global Insurance appreciated 350.00 percent.
Union Dicon Salt returned 239.29 percent, and RT Briscoe gained 215.71 percent.
Among the better-known mid-cap counters, Livestock Feeds delivered 185.00 percent, The Initiates Plc (TIP) returned 173.04 percent, while Neimeth International Pharmaceuticals appreciated 148.70 percent.
Only two large-cap companies, Aradel Holdings and Presco Plc, featured among the top ten performers. Aradel returned 192.00 percent, while Presco gained 130.00 percent.
The composition of the top-performing stocks illustrates the shift in investor preference. Apart from Aradel Holdings and Presco, both of which benefited from favourable sector-specific fundamentals, the remaining leaders were largely companies with relatively smaller market capitalisation operating in agriculture, healthcare, logistics, insurance and industrial services. Their outperformance suggested that investors were increasingly looking beyond traditional blue-chip names in search of stronger earnings growth and valuation upside.
The resilience of these counters became more evident after the market reached its May peak.
Between the May high and the June close, the All-Share Index declined 8.28 percent, while the Banking Index fell 12.40 percent as investors reacted to recapitalisation-related fundraising and tighter monetary conditions.
Several heavyweight counters came under intense selling pressure during the June correction.
In contrast, Neimeth Pharmaceuticals appreciated 11.20 percent after the May peak and recorded a 9.47 percent single-day gain during June trading.
Livestock Feeds advanced 9.15 percent over the same period and repeatedly hit the NGX’s daily upper trading limit of 10.00 percent.
The Initiates Plc also added 5.30 percent despite the broader market weakness. The financial profiles of many of the outperformers differed markedly from those of the large-cap stocks that had dominated previous rallies.
Several of the leading mid-cap companies generated earnings primarily from domestic operations and maintained significantly lower foreign exchange exposure than multinational manufacturers and financial institutions.
Zichis Agro Allied reported a 256 percent increase in first-quarter revenue to approximately N420 million, supported largely by domestic operations.
Livestock Feeds also expanded its gross profit margin by 18.4 percent, benefiting from local sourcing that reduced exposure to exchange-rate volatility.
By comparison, several large-cap companies continued to contend with foreign exchange translation losses, imported input costs and legacy foreign currency obligations accumulated during earlier periods of naira depreciation.
Institutional fund flows also pointed to changing investment preferences.
According to the National Pension Commission (PenCom), total pension assets under management exceeded N29.52 trillion by the end of the first quarter.
During the same period, pension fund exposure to domestic equities increased from N4.29 trillion in January to N5.46 trillion by March, representing a 27.03 percent increase in equity allocation.
The increase in pension fund exposure to equities did not automatically translate into broad-based buying across the market. Rather, available liquidity appeared to be deployed selectively toward companies offering stronger growth prospects and relatively attractive valuations. That pattern coincided with the sustained appreciation recorded by several mid-cap counters throughout the half-year, even as larger banking and industrial stocks experienced increased selling pressure during the June correction.
Although individual pension fund holdings remain difficult to identify because of nominee account structures, the increase in equity allocations coincided with the strong re-rating recorded across several domestically focused mid-cap companies.
The broader liquidity environment also favoured selective equity investing.
The Central Bank maintained the Monetary Policy Rate at 26.50 percent throughout the second quarter, keeping yields on Treasury bills and government bonds attractive to institutional investors.
Against that backdrop, companies capable of delivering strong earnings growth and substantial capital appreciation attracted a greater share of available equity investment.
The first half of 2026 suggests that market leadership broadened beyond the traditional banking and industrial heavyweights. While large-cap stocks continued to determine the direction of the benchmark index because of their weightings, much of the strongest price appreciation came from domestically oriented mid-cap and small-cap companies with improving earnings, lower foreign exchange sensitivity, and stronger operational momentum.
Whether that leadership persists into the second half will depend on corporate earnings, monetary policy, institutional liquidity, and investor risk appetite. For H1, however, the evidence is compelling. The NGX delivered a 47.43 per cent return and created N47.84 trillion in investor wealth, but the market’s biggest winners were not necessarily its biggest companies. Instead, the strongest gains came from a select group of mid-cap and small-cap stocks that continued to attract investor interest even as the broader market surrendered N13.29 trillion during June’s correction.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
