Shares of Aluminium Extrusion Industries Plc (ALEX) kicked off 2026 on a strong footing, rising by 45.57% in the first trading week of the year to close at N23.80 on January 2. The sharp weekly gain extends an extraordinary rally recorded in December 2025, when the stock soared by an eye-catching 202.80%, making it one of the best-performing equities on the Nigerian Exchange in recent months.
The renewed investor interest marks a dramatic turnaround for a stock that had spent nearly two years trading sideways with minimal activity. From a starting price of N7.15 at the beginning of December 2025, ALEX surged to N21.65 by the end of the month, driven by a combination of rising volumes, improving sentiment, and renewed optimism around the company’s operational outlook.
December rally sets the tone
Market data shows that December 2025 was ALEX’s most active trading month in recent years. More than 43 million shares were exchanged during the month, reflecting a sharp rise in liquidity and participation from both retail and speculative investors. This spike in trading activity coincided with a major corporate and policy development: the revival of operations at the company’s production plant in Imo State.
The rally gained significant momentum following a flag-off ceremony held on December 23, 2025, to mark the resumption of activities at the Aluminium Extrusion Industries facility. The event, backed by the Imo State Government, signaled renewed public-sector support for the company and appeared to restore market confidence in its long-term prospects.
Investors interpreted the reopening as a positive signal that the company could gradually return to full production, improve revenues, and regain relevance in Nigeria’s aluminium value chain. That optimism quickly translated into aggressive buying pressure, pushing the stock sharply higher before the year ended.
Strong momentum into 2026
The bullish momentum did not fade with the turn of the year. In the shortened trading week ending January 2, 2026, ALEX added another 45.57%, closing at N23.80. As of mid-session trading on January 5, the stock was quoted at N24.10, with monthly trading volume already crossing the 5-million-share mark—an early indication that investor interest remains strong.
For market watchers, the speed of the rebound is particularly striking. After nearly two years of price stagnation between December 2023 and December 2025, sentiment around ALEX shifted decisively within weeks, underscoring how quickly narratives can change on the Nigerian Exchange Limited when new catalysts emerge.
Why the rally matters
Beyond short-term price gains, the rebound in ALEX shares reflects broader expectations around industrial revival and sub-national economic development. The restart of production at the company’s plant positions Aluminium Extrusion Industries as a potential beneficiary of renewed emphasis on local manufacturing, import substitution, and job creation.
For Imo State, the reopening of the facility carries economic significance, with prospects of employment restoration, upstream supply chain activity, and increased internally generated revenue. For investors, the surge in trading volumes and price performance serves as a signal that the market is reassessing the company’s valuation and future earnings potential.
However, analysts caution that sustaining the rally will depend on consistent operational execution, transparent disclosures, and evidence that production restart translates into improved financial performance over time.
What you should know
Aluminium Extrusion Industries Plc was incorporated in 1982 and is headquartered in Owerri. The company manufactures aluminium extruded profiles, billets, and roofing sheets and currently operates as a subsidiary of Tower Aluminium Nigeria Plc.
In November 2023, Tower Alloys Industries acquired a 67.55% controlling stake in ALEX, triggering a brief rally of about 10%. However, that initial excitement faded, and the stock remained largely inactive for almost two years until the recent operational revival reignited interest.
At its current price of N24.10, ALEX has an estimated market capitalisation of about N5.30 billion, based on 219.96 million outstanding shares. The stock’s recent performance ranks among the strongest rallies on the NGX in recent months, placing it firmly on investor watchlists as the market assesses whether the bullish momentum can be sustained into the rest of 2026.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
