Find below the sectors that I am bullish on in 2026 based on Q1 sentiment. The NGX is now in a selective rally phase, not a broad-based bull run. But based on current flows, macro drivers, and recent performance, a few sectors clearly have a higher probability of outperformance. 1. Banking / Financial Services: Still the strongest near-term catalyst Why it can outperform post-Q1 results: Strong earnings visibility. The banking sector has just injected fresh capital into its operations. What do you think they will do with the fresh capital? In simple terms, they will make more money with it, and that will have a positive effect on their bottom line Recapitalization across banks and financial institutions is expected to drive market activity and liquidity. Early 2026 trading has already shown renewed interest in fundamentally strong banking names. Institutional money typically flows into this sector first during bullish phases. 2. Oil & Gas I put this in the second position as a result of new developments in the sector. I see a tactical upside here, especially in a particular company. I expect you to know this company if you have been following me for a while. I also expect two of the companies in this sector to post very strong Q1 results. Below are other reasons I think this sector could “boom” faster than other sectors: - Direct exposure to global oil price movements - refinery ecosystem and upstream expansions Recent activities on the NGX Oil & Gas index has posted strong gains compared to other sectors. This is just the beginning. Even though the sector is more volatile than others, it will most likely still outperform other sectors if favourable oil trends continue. 3. Industrial Goods: Lagging a bit, because of the giant that has been trading flat, but with rotation potential I say this because two of the three companies I track here have rerated by more than 35% in the last couple of months, while the giant in the sector has traded flat recently. What to watch out for here: Government spending on key infrastructure, because cement and infrastructure plays benefit from large projects. Cement prices are also up by 20% in Q1. I expect this increase to reflect on the bottom line. This is what I will do today if I have fresh funds: Go heavy on a few banks (core position), add one oil & gas name, and one name in the industrial goods sector to my current position. You should know all the company names here if you have been following me for a while. This is me thinking out loud and not investment advice.
