2026: Analyst urges fiscal discipline to sustain stock market gains
Stock
By Taiye Olayemi
Lagos, Dec. 31, 2025 (NAN) Highcap Securities Ltd. has urged fiscal discipline and macroeconomic stability to sustain the Nigerian stock market’s strong performance in 2026.
This is following the N36.62 trillion gain recorded by investors in 2025.
Vice President of Highcap Securities Ltd., Mr David Adonri, said this while reacting to the exceptional performance of the equities market in 2025, which saw the Nigerian Exchange Ltd. deliver over 50 per cent returns to investors.
Adonri while speaking with the News Agency of Nigeria (NAN), said the market was progressing into 2026 from a position of strength, supported by structural reforms and improving economic fundamentals.
He, however, cautioned investors to remain mindful of the cyclical nature of the capital markets, as he explained that periods of boom were often followed by corrections.
“In a capitalist economy, the stock market is constantly assaulted by boom and bust cycles.
“We have been in a boom for quite a long time, and nobody can accurately predict when a bust will occur,” Adonri said.
He urged investors to avoid overexposure to equities alone and take advantage of the diverse product offerings in the Nigerian capital market, including bonds, commercial papers, mutual funds, derivatives and commodities.
He said this was neccesary to hedge risks.
According to him, ongoing legal and market reforms had played a major role in restoring investor confidence, with the positive impact of those reforms now crystallising in key economic indicators.
He cited declining inflation, a gradual moderation in interest rates, and GDP growth of around four to five per cent as indications that the economy is well positioned for sustained expansion.
Adonri also noted that improved security conditions in rural areas could unlock significant growth in agriculture, mining and industrial production, further strengthening the economic base.
“The economy is sitting on a pedestal that can sustain this momentum through 2026,” he said.
However, he identified election-related spending pressures as a potential risk, as he emphasised the need for the monetary authorities to effectively manage money supply to prevent a resurgence of inflation.
“If inflation continues to recede and money supply is properly managed, 2026 could be another year of bumper harvest for the capital market,” Adonri said. (NAN) (www.nannews.ng)
PTB/VIV
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Edited by Vivian Ihechu