Nigerian equities extended gains last week as investor demand for industrial and fundamentally strong stocks pushed the market higher, with analysts highlighting insurance, banking and healthcare shares as among the top picks for the week ahead.
The Nigerian stock market advanced by one percent during the week, continuing a strong rally that has seen the benchmark index return 57.3 percent since the start of 2026.
Analysts said investors remained focused on companies with strong earnings prospects, attractive valuations and dividend potential as first-quarter corporate results continue to shape market sentiment.
“Investor positioning is likely to remain tilted towards fundamentally strong and liquid names, particularly as Q1:2026 earnings releases continue to shape sentiment across sectors,” analysts at Meristem Securities said in a market outlook.
The firm added that dividend considerations were expected to remain a key driver of investor flows in the coming weeks.
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Among the stocks highlighted was AIICO Insurance, which analysts said showed strong fundamentals.
The insurer recorded a net profit ratio of 17.1 percent and a price-to-earnings ratio of 7.4 times, while its relative strength index stood at 60.2.
Fidelity Bank was also identified as a preferred stock because analysts believe it is trading below its intrinsic value.
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The bank posted a net profit ratio of 19.1 percent and a price-to-earnings ratio of four times, with a relative strength index of 51.3.
Pharmaceutical company May & Baker Nigeria was selected on the basis of what analysts described as robust fundamentals.
The company recorded a net profit ratio of 11.7 percent and a price-to-earnings ratio of 16.7, while its relative strength index stood at 56.3.
Other stocks highlighted included Cornerstone Insurance and Ikeja Hotel.
Cornerstone Insurance posted a net profit ratio of 14 percent and a price-to-earnings ratio of 13.1 times, while Ikeja Hotel was cited for trading below intrinsic value with a price-to-earnings ratio of 5.5 times.
The relative strength index, commonly used by investors to assess market momentum and trading conditions, stood at 58.2 for Cornerstone and 60.3 for Ikeja Hotel.
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Nigeria’s stock market has been one of Africa’s best-performing equity markets in recent months, supported by banking sector reforms, rising corporate earnings and growing investor appetite for local assets amid inflationary pressures.
Financial analysts say banking and insurance stocks have particularly benefited from expectations of stronger earnings linked to higher interest rates and increased investment income.
Industrial goods companies have also attracted renewed interest as investors position for infrastructure spending and economic reforms introduced by the government.
Market observers caution, however, that stock selection remains critical as volatility and profit-taking could emerge following the strong rally seen since the beginning of the year.
Analysts also noted that investor sentiment will likely remain tied to macroeconomic developments, monetary policy decisions and the pace of economic reforms in Africa’s largest economy.
