The Nigerian Exchange (NGX) Oil & Gas Index has emerged as the top-performing sectoral index on the local bourse, posting a year-to-date (YtD) return of 96.8 per cent as of July 10, significantly outperforming other market indices.
Market data released by the Nigerian Exchange showed that the Oil & Gas Index almost doubled the performance of the benchmark NGX All-Share Index (ASI), which recorded a 56.67 per cent gain over the same period.
The NGX Industrial Goods Index ranked second with an 88.73 per cent year-to-date return, while the NGX Banking Index delivered a 41.78 per cent gain. In contrast, the NGX Insurance Index was the only sectoral gauge to record a negative performance, declining by 4.74 per cent.
Analysts attributed the insurance sector’s weak performance to subdued investor sentiment driven by concerns over ongoing recapitalisation, weaker earnings among some operators, and sustained profit-taking following strong rallies recorded in the previous two years.
The sector’s decline marks a reversal from its recent performance. In 2024, insurance stocks generated a return of 107.74 per cent, making the sector the second-best performer behind oil and gas, which advanced by 159.81 per cent.
Market operators said investors have adopted a cautious stance ahead of the industry’s recapitalisation deadline, with uncertainty surrounding potential mergers, acquisitions, and planned equity offerings weighing on demand for insurance stocks.
Despite the current headwinds, industry stakeholders remain optimistic that the recapitalisation exercise will strengthen the sector over the long term by creating more resilient and better-capitalised insurance companies.
The impressive performance of the Oil & Gas Index has been supported by strong gains in several constituent stocks. Aradel Holdings recorded the biggest increase, with its share price surging 128 per cent year-to-date to ₦1,526.80 from ₦670 at the close of 2025.
Japaul Gold & Ventures also posted a strong performance, rising 40.3 per cent to ₦3.24 per share, while Conoil gained 12.2 per cent to close at ₦210. Eterna recorded a modest increase of 1.05 per cent to ₦28.80 per share, whereas TotalEnergies Nigeria traded flat at ₦640. Oando was the only major decliner within the index, slipping 0.7 per cent to ₦39.90 per share.
Commenting on the sector’s performance, Vice President of Highcap Securities Limited, David Adnori, said the Oil & Gas Index’s leadership reflects the strength of listed companies rather than the broader industry.
According to him, investor confidence has remained strong in companies with solid earnings performance, particularly Aradel Holdings, whose consistent financial results have continued to attract market interest. He noted, however, that sentiment around Oando has weakened, underscoring the differing fortunes of companies within the sector.
The latest market performance reinforces the growing appetite for fundamentally strong energy stocks, with investors continuing to favour companies delivering robust earnings and benefiting from ongoing reforms in Nigeria’s oil and gas industry.
