Analysts hail equities rally as over 30 NGX stocks beat inflation in April

Market analysts have lauded the strong performance of Nigerian equities in April 2026, describing it as a clear signal of renewed investor confidence despite persistent inflationary pressures across the economy

According to data from the Nigerian Exchange (NGX), more than 30 listed equities delivered returns above the 15.69 per cent headline inflation rate recorded in April, effectively preserving and, in many cases, significantly growing investors’ real wealth.

The latest figures released by the National Bureau of Statistics (NBS) showed that inflation rose to 15.69 per cent in April from 15.38 per cent in March. The Consumer Price Index (CPI) increased to 138.3 points from 135.4, reflecting higher average prices of goods and services nationwide.

Food and non-alcoholic beverages accounted for the largest inflationary contribution at 6.40 per cent, followed by restaurants and accommodation services at 3.56 per cent. Transport and health contributed 1.70 per cent and 1.21 per cent respectively.

Urban inflation stood at 15.40 per cent year-on-year, while rural inflation was higher at 16.36 per cent. Food inflation rose to 16.06 per cent year-on-year, driven by higher prices of staples including millet, yam flour, fresh ginger, beef, garri, beans, tomatoes, wheat grain, soybeans, and plantain.

Despite these headwinds, the equities market posted broad-based gains. Experts say the rally reflects a shift in portfolio allocation towards stocks as investors seek inflation hedges and higher real returns.

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Financial analyst Bismarck Rewane said the April performance demonstrates “a strong appetite for risk assets,” noting that many corporates posted resilient earnings, which supported share price appreciation.

He added that “in an environment where fixed-income yields are gradually normalising, equities become attractive for investors seeking real positive returns.”

Eight stocks recorded gains above inflation but below 20 per cent, including Presco (16.16 per cent), Custodian Investment (16.20 per cent), Guinness Nigeria (17.44 per cent), Livestock Feeds (18.66 per cent), Industrial and Medical Gases (19.17per cent), Dangote Cement (19.75 per cen), GTCO (19.84 per cent), and Beta Glass (19.96 per cent).

In the 20–30 per cent range were MTN Nigeria (20.39 per cent), Airtel Africa (21.00 per cent), BUA Foods (21.18 per cent), Stanbic IBTC (23.97 per cent), Seplat (26.32 per cnt), BUA Cement (27.95 per cent), PZ Cussons (28.72 per cent), and First HoldCo (29.30 pe cent).

Market strategist Ayodeji Ebo attributed the rally in banking and industrial stocks to “earnings momentum, improved capital buffers, and investor expectations of stronger dividend payouts.”

He added that consumer goods counters also benefited from pricing power and cost-pass-through strategies.

Stocks delivering between 30 and 60 per cent returns included Wema Bank (31.35 per cent), Vitafoam (31.27 per cent), Nigerian Aviation Handling Company (33.68 per cent), Zenith Bank (36.22 per cent), Nascon Allied (38.16 per cent), and Multiverse Mining (39.78 per cent).

Other strong performers were Chemical & Allied Products (45.49 per cent), The Initiates (45.71 per cent), Unilever Nigeria (46.28 per cent), Union Dicon (52.08 per cent), Lafarge (59.16 per cent), and Zichis (59.56 per cent).

At the top end, Aradel Holdings surged 60.63 per cent, Ecobank rose 75.22 per cent, and UACN gained 83.33 per cent. Trans-Nationwide Express led the market with an exceptional 125.35 per cent return in April.