The Nigerian stock market has experienced a significant rally in 2026, with the All-Share Index (NGXASI) up 56.40% year-to-date. However, a closer examination reveals that a handful of smaller companies are driving a disproportionate amount of this growth.
Between January and June 2026, Zichis Agro Allied Industries, Fortis Global Insurance, SCOA Nigeria, RT Briscoe, and Redstar Express have recorded astonishing gains, ranging from 252% to 1,604%. Their collective market capitalization is N115.7 billion, yet their fundamental performance often tells a different story.
Zichis Agro Allied Industries presents a complex case. Full-year 2025 revenue increased by 134% to N675.6 million, with profit soaring 478% to N328.1 million. The first quarter of 2026 was even more impressive, with revenue up 819% year-on-year to N420 million and profit reaching N228.9 million. The company also maintains a virtually debt-free balance sheet.
Despite this strong earnings growth, the stock's 1,604% rally has outpaced its fundamental performance, with its current price potentially reflecting several years of future earnings growth. Dangote Cement, Nigeria's largest company, is noted as being cheaper relative to its earnings than Zichis. Zichis's stock price has already begun to retreat, showing a 6.52% decrease month-on-month. Investors holding Zichis are advised to consider taking profits, while new investors should await a significant pullback.
Fortis Global Insurance, on the other hand, shows a concerning financial picture. The company reported a net loss of N1.69 billion for the full year 2025, with a negative EPS of -N0.13. The first quarter of 2026 saw a loss of N576.5 million, an increase from the previous year. Accumulated losses stand at N18.87 billion, while borrowings have jumped 49% to N5.74 billion, coinciding with deepening losses and a 31% drop in cash over one year.
The stock's 515% rally by March has seen its year-to-date gains retract to 370% after a N775 million market value reduction in June. A significant volume of 1.25 billion shares traded over three months was valued at only N1.53 billion, indicating potential retail momentum trading. Investors are cautioned that there is no fundamental basis for Fortis at its current price, and they should monitor the June 22 earnings release closely.
SCOA Nigeria has shown a profit recovery, moving from a N591.4 million loss in 2022 to a net income of N553.7 million in 2025. However, its revenue has been volatile and currently stands at N8.36 billion, less than half of its value four years ago. This suggests the profit increase may stem from greater efficiency in a shrinking business rather than overall growth.
The company's book value per share is technically negative, and its Relative Strength Index (RSI) has reached 100, indicating a potential for a pullback. Investors holding SCOA are advised to take profits, and new investors should wait for further evidence of sustained performance before considering an entry, particularly ahead of the July 24 earnings release.
In separate news, CardinalStone Securities Limited was named Stockbroker of the Year at the 2026 Nairametrics Capital Market Awards. The firm has been recognized for its innovative trading solutions, market expertise, and client success. CardinalStone has advised on over ₦5 trillion in capital markets and M&A transactions and has been the top-ranked securities firm on the Nigerian Exchange by value for four consecutive years (2022–2025).
