Investment researchers at Bancorp Securities Limited, one of Nigeria’s frontline investment research and consulting firms, have predicted that the nation’s equities market would sustain the positive momentum it has recorded over the past few weeks based on the Q1 2026 earnings of listed firms on the exchange and improved liquidity in the economy.
The experts gave this prediction in the firm’s ‘Weekly Stock Recommendation: April 27th to April 30, 2026’ circulated to our correspondent on Monday.
They recalled that last week Nigeria’s macroeconomic landscape reflected a modest rebalancing across key drivers, as Oil sector fundamentals improved, supported by a recovery in production and elevated global prices, strengthening the external position and fiscal outlook.
Similarly, the researchers noted that at the same time, fiscal pressures remained evident as the government advanced new borrowing needs.
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Specifically, for the equities market, they maintained that in the week under review, market activity remained robust, with total volume traded rising to 3.75 billion units, while value traded increased to N207.31 billion, adding that the simultaneous increase in both metrics reflects improved participation and stronger conviction behind the ongoing rally, with flows largely concentrated in fundamentally strong, large-cap counters.
However, the analysts observed that the underlying sentiment showed early signs of moderation, with market breadth declining to 0.99x, indicating that gains were increasingly concentrated in a narrower set of stocks driving index performance.
On the trading outlook of the local bourse this week, the firm’s researchers forecasted that the equities market would remain broadly supported, with liquidity conditions likely to improve further in the near term. The extension of trading hours on the Nigerian Exchange, effective April 27, 2026, is a structurally positive development, increasing daily trading time to align more closely with major global markets such as the London Stock Exchange, while also capturing part of the U.S. trading window.
According to them, this is expected to enhance market depth, improve price discovery, and support higher trading volumes over time. At the same time, evolving dynamics in the fixed income market suggest a gradual reallocation of liquidity toward equities.
This is even as the experts noted that recent Treasury Bills auction results indicated a moderation in investor demand, with total bids declining to NGN2.36 trillion and bid-to-cover settling at 1.19x, adding that although subscription levels remained above offer at 2.60x, the softer demand profile points to a more measured investor stance.
For the week, they projected. “We expect the market to remain positive, supported by Q1 2026 earnings and improved liquidity. Banking stocks may experience mixed sentiment as investors reassess earnings quality and dividend signals, while Consumer Goods stocks with improving earnings are likely to continue attracting flows. Industrial Goods should remain supported by infrastructure-linked demand, while Oil & Gas will continue to benefit from favourable volatility in commodity market.”
