The Nigerian equities market maintained its upward trajectory last week, extending a three-week rally that has continued to reinforce investor confidence. Market capitalisation rose by N8.67 trillion to close at N139.827 trillion, reflecting sustained demand for large-cap and fundamentally strong stocks across key sectors.
The rally was largely propelled by strong buying interest in select heavyweight counters, particularly Aradel Holdings, MTN Nigeria Communication Plc, and BUA Foods Plc. Aradel Holdings led the pack with a 28.9% gain, while MTN Nigeria advanced by 11%. BUA Foods also recorded a 3.3% increase, contributing to the overall positive sentiment that dominated trading sessions.
Reflecting this performance, the Nigerian Exchange Limited All-Share Index (NGX ASI) rose by 6.6% to close at 217,131.54 basis points. This pushed the market’s month-to-date return to 12.6% and its year-to-date performance to an impressive +39.5%, underscoring one of the strongest equity market runs in recent periods.
Broad sector rally supports market strength
Sectoral performance was broadly positive, with gains recorded across most key indices. The Oil & Gas index led with a 17.6% rise, followed by Banking at 11.9%. Consumer Goods and Industrial Goods also posted gains of 3.4% and 1.3% respectively, while the Insurance index ended the week flat, reflecting a more cautious tone in that segment.
Market breadth remained firmly positive, with 61 advancing stocks compared to 36 decliners, signalling widespread buying interest rather than isolated rallies in a few counters.
Among the top performers, Trans-Nationwide Express surged by 60.48% to close at N6.05 per share. Ecobank Transnational Incorporated followed with a 46.30% gain to N67.30, while Stanbic IBTC Holdings climbed 36.63% to N188.55 per share, reflecting strong momentum in financial stocks.
On the lagging side, Coronation Insurance declined by 14.38% to N2.50, while Ikeja Hotel shed 14.36% to close at N33.40. International Energy Insurance also weakened, dropping 13.80% to N3.06 per share.
Trading activity rises on stronger participation
Investor participation improved notably during the week under review. Total turnover rose to 3.588 billion shares valued at N195.313 billion across 254,553 deals, compared with 3.361 billion shares worth N151.948 billion exchanged in 229,442 deals the previous week.
The Financial Services sector remained the dominant driver of activity, accounting for 2.498 billion shares valued at N94.005 billion in 111,052 deals. This represented 69.62% of total volume and 48.13% of total value, reaffirming the sector’s central role in market liquidity.
The Services sector followed with 329.034 million shares worth N3.452 billion, while the Oil and Gas sector recorded 152.472 million shares valued at N42.511 billion, reflecting renewed investor interest in energy-linked equities.
At the stock level, trading in Sterling Financial Holdings Company, Access Holdings, and Zenith Bank dominated activity, jointly accounting for 1.038 billion shares worth N46.081 billion. Together, they contributed 28.92% of total volume and 23.59% of total market value.
Outlook: bullish sentiment expected to persist, with caution on profit-taking
Market analysts anticipate that the positive momentum may extend in the near term, although intermittent profit-taking could moderate the pace of gains following the recent rally.
According to Cowry Assets Management Limited, strong investor sentiment, improved liquidity conditions, and sustained interest in fundamentally sound large-cap stocks are likely to continue supporting the market. However, they noted that investors may begin to lock in gains as prices rise, leading to short-term pullbacks even within a broader bullish structure.
Similarly, Afrinvest Limited expects continued market strength, supported by positioning ahead of the release of 2025 audited financial statements and potential dividend announcements, which traditionally influence equity flows.
Cordros Research added that attention will gradually shift to early Q1-2026 earnings releases on the Nigerian Exchange Limited, with investor behaviour expected to become increasingly selective. Stock-specific movements, they noted, will likely be driven by earnings performance and forward-looking corporate guidance as the reporting season unfolds.
Overall, the market enters the new week with strong underlying momentum, though sentiment is expected to oscillate between continued accumulation and tactical profit-taking as investors reassess valuations in response to fresh corporate and macroeconomic signals.