Buoyed by Demand for Blue-chip Coys, Stock Market Added N6.8trn January

Kayode Tokede

Buoyed by investors’ confidence and massive demand for 23 blue-chip companies, the market capitalisation of the Nigerian Exchange Limited (NGX) went up by N6.8 trillion or 6.8 per cent to close January 2026 at N106.15 trillion.

Following their performance in January, the 23 blue-chip companies, which were led by BUA Foods Plc controls 87.5 per cent or N92.9 trillion of the overall market capitalisation of the NGX.

The firms cut across cement makers, financial institutions, Oil & gas, telecommunication, agriculture and Fast-Moving Consumer Goods (FMCG), and power generating companies.

The 23 firms are well-established, financially sound, and reputable with a history of reliable performance and regular dividend payout to shareholders.

As of close of trading activities in January 2026,  BUA Foods  Plc emerged as the most capitalised stock on the NGX, overtaking MTN Nigeria Communications Plc, Dangote Cement Plc, Airtel Africa Plc and BUA Cement Plc.

As the stock price of BUA Foods traded flat at N798.90 per share, its market capitalisation closed January 2026 at N14.38 trillion.

The food manufacturing giant declared profit after tax  of N507.73 billion in 2025, about 91 per cent increase over N265.99 billion achieved in the corresponding period of 2024.

The group’s combined revenue for the period was N1.80 trillion, an 18 per cent increase over the N1.53 trillion achieved in the full year 2024.

BUA Foods was followed by MTN Nigeria Communications with N12.01trillion market capitalisation as of January, 2026.

The stock price of MTN Nigeria in January 2026 gained 11.9 per cent to close at N572.00 per share from N511.00 per share it closed for trading in 2025.

The growth in stock price is on the backdrop of  resurgence from loss to profitability in first quarter 2025 and half year ended June 2025 result and accounts.

For  Dangote Cement, its market capitalization closed the first trading month in 2026 at N10.7trillion following a 4.3 per cent increase in stock price to N635 per share from N609 per share iti closed for trading last year.

In addition, Airtel Africa and BUA Cement  closed January 2026 with market capitalization of N8.53 trillion and N6.2trillion, respectively to join the list of five most capitalized stocks on the Exchange.

Guaranty Trust Holding Company Plc and Aradel Holdings Plc are the only two companies with an average N3 trillion market capitalisation as of January 2026.

The likes of Geregu Power Plc, Transcorp Power Plc, Zenith Bank  Plc, First Holdco Plc, Lafarge Africa Plc, International Breweries Plc and Nigerian Breweries Plc are in the category of an average of N2 trillion market value  on the Exchange.

Meanwhile, United Bank for Africa Plc, Access Holdings Plc, Okomu Oil Palm Plc, Presco  Plc

Nestle Nigeria Plc, Ecobank Transnational Incorporated, Stanbic Ibtc Holdings Plc  and Transcorp Hotels Plc have an average market capitalisation of N1trillion.

The Nigerian stock market has recorded an upward trajectory since the entry of the new administration led by President Bola Tinubu, and it is due to the proactive implementation of reforms such as the removal of fuel subsidy and the liberalization of the foreign exchange market.

Foreign investors and High Network Investors have continued to take positions in these 23 stocks amid CBN foreign exchange policies as their prices in the past was undervalued on the bourse.

Analysts expected these large-cap stocks to continue driving overall market performance in the short term, particularly as many of them are positioned favourably in sectors benefiting from macroeconomic stabilisation, ongoing infrastructure investments, energy reforms, and rising consumer demand.

Speaking with THISDAY, the Vice Chairman of Highcap Securities Limited, David Adonri called for more large companies to list on the NGX to deepen the market, boost liquidity, attract a broader investor base, and foster national economic growth.

He said, the current market capitalization is heavily concentrated among a few large firms, and increased listings would ensure more equitable wealth distribution and align the capital market with the size of Nigeria’s economy.

To him, a greater number of listed companies, especially large ones like the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, would significantly increase market depth and liquidity, making it easier for investors to trade shares.

On his part, Chief Research Officer, InvestData Consulting Limited, Mr. Omordion Ambrose noted that the Nigerian stock market is over-concentrated with the attendant ‘keyman’ risks, part of what are major barriers to market development.

“This is demonstrated by the fact that only 23 out of over 140 listed companies account for over 80 per cent of stock market capitalization,” he said.

He noted that the over 140 issuers base is relatively small, urging for more companies to utilize the opportunity of accessing funds needed to expand their businesses and get listed

“Many eligible companies including multinational companies particularly in the telecom and oil and gas sectors remain unlisted. If we can have them listed, the stock market will be more liquidity and diversified,” he said.

He, however, recommended that privatized government enterprises be listed on the NGX for the capital market to develop and support the nation’s development.

While investor sentiment suggests that the Nigerian stock market’s recent peak is not a mere flash in the pan, capital market analysts stress the importance of ongoing stability, security, and continued economic reforms.

The historic high of the Nigerian stock market has created ripples in the global financial arena, with investors keenly observing the performance of these 23  companies.