Weekly Stock Radar: Aradel, Lafarge Africa & FCMB Lead as Market Momentum Strengthens
Nigerian equities delivered their strongest weekly performance in 2026 so far, driven by upbeat investor sentiment and a wave of impressive corporate earnings. The rally pushed the benchmark index up by 3.8%, with broad-based gains across most sectors of the market.
Market Snapshot: What Drove the Rally?
With the exception of the insurance index, all sector indices closed in positive territory. The standout performer was the oil and gas sector, which surged by nearly 11%, reflecting renewed investor confidence in energy stocks following strong earnings releases.
Analysts at Meristem Securities noted that market sentiment remains positive, supported by:
• Ongoing corporate earnings announcements
• Rising expectations around dividend declarations
• Increased interest in real sector stocks
They expect these factors to continue underpinning market momentum in the near term.
What Investors Are Watching Next
As the earnings season progresses, investors are increasingly positioning themselves ahead of:
• More audited and unaudited full-year results
• Dividend declarations
• Short- to medium-term price opportunities
This has heightened selectivity, with investors focusing on stocks with strong fundamentals rather than broad market exposure.
Stock Picks Backed by Fundamentals
In response to this trend, analysts highlighted several companies with solid financial metrics and strong performance indicators. These stocks are presented strictly as investment guides, not buy or sell recommendations.
Aradel Holdings
Aradel topped the list after posting a 55% surge in earnings for 2025, with profit reaching N401.2 billion. The company’s strong profitability profile and valuation metrics continue to attract investor interest, particularly within the energy space.
Lafarge Africa
Lafarge made the cut on the back of robust fundamentals, reflecting operational resilience in the building materials sector. Its valuation and profitability ratios suggest sustained investor confidence amid infrastructure and construction demand.
FCMB Group
FCMB stood out following an impressive 141% increase in net profit for the 2025 financial year. The bank’s relatively low valuation multiple and improving earnings profile have made it attractive to value-oriented investors.
Custodian Investment
Custodian Investment was selected for trading below its intrinsic value, offering potential upside for investors seeking undervalued stocks with solid profitability metrics.
Wema Bank
Wema rounded out the list after more than doubling its net profit in 2025, supported by strong margins and improving financial strength, positioning it as one of the standout performers in the banking sector.
Big Picture Takeaway
The Nigerian stock market is entering a phase where earnings quality and dividend expectations are driving stock selection. Investors are becoming more deliberate, favouring companies with:
• Strong profitability
• Reasonable valuations
• Clear growth narratives
As more corporate results are released, market direction is likely to be shaped by how well companies meet or exceed expectations.
Nigerian equities delivered their strongest weekly performance in 2026 so far, driven by upbeat investor sentiment and a wave of impressive corporate earnings. The rally pushed the benchmark index up by 3.8%, with broad-based gains across most sectors of the market.
Market Snapshot: What Drove the Rally?
With the exception of the insurance index, all sector indices closed in positive territory. The standout performer was the oil and gas sector, which surged by nearly 11%, reflecting renewed investor confidence in energy stocks following strong earnings releases.
Analysts at Meristem Securities noted that market sentiment remains positive, supported by:
• Ongoing corporate earnings announcements
• Rising expectations around dividend declarations
• Increased interest in real sector stocks
They expect these factors to continue underpinning market momentum in the near term.
What Investors Are Watching Next
As the earnings season progresses, investors are increasingly positioning themselves ahead of:
• More audited and unaudited full-year results
• Dividend declarations
• Short- to medium-term price opportunities
This has heightened selectivity, with investors focusing on stocks with strong fundamentals rather than broad market exposure.
Stock Picks Backed by Fundamentals
In response to this trend, analysts highlighted several companies with solid financial metrics and strong performance indicators. These stocks are presented strictly as investment guides, not buy or sell recommendations.
Aradel Holdings
Aradel topped the list after posting a 55% surge in earnings for 2025, with profit reaching N401.2 billion. The company’s strong profitability profile and valuation metrics continue to attract investor interest, particularly within the energy space.
Lafarge Africa
Lafarge made the cut on the back of robust fundamentals, reflecting operational resilience in the building materials sector. Its valuation and profitability ratios suggest sustained investor confidence amid infrastructure and construction demand.
FCMB Group
FCMB stood out following an impressive 141% increase in net profit for the 2025 financial year. The bank’s relatively low valuation multiple and improving earnings profile have made it attractive to value-oriented investors.
Custodian Investment
Custodian Investment was selected for trading below its intrinsic value, offering potential upside for investors seeking undervalued stocks with solid profitability metrics.
Wema Bank
Wema rounded out the list after more than doubling its net profit in 2025, supported by strong margins and improving financial strength, positioning it as one of the standout performers in the banking sector.
Big Picture Takeaway
The Nigerian stock market is entering a phase where earnings quality and dividend expectations are driving stock selection. Investors are becoming more deliberate, favouring companies with:
• Strong profitability
• Reasonable valuations
• Clear growth narratives
As more corporate results are released, market direction is likely to be shaped by how well companies meet or exceed expectations.
