Market performance remained positive overall, with total capitalisation gaining more than N837 billion week-on-week. The NGX market capitalisation rose to N129.806 trillion, up from N128.806 trillion recorded in the previous week, reflecting sustained investor confidence in select equities.
Similarly, the benchmark NGX All-Share Index (ASI) edged higher by 0.4% week-on-week to close at 201,698.89 points, compared to 200,914.06 points in the prior week. The modest gain was largely driven by bargain hunting in bellwether stocks, including MTN Nigeria, Guaranty Trust Holding Company (GTCO), Transnational Corporation of Nigeria (Transcorp), and Unilever Nigeria, all of which recorded notable price appreciation.
Despite the upward movement in key indices, overall trading activity weakened significantly. Total volume traded declined by 27.7% week-on-week, while the value of transactions dropped by 42.9%, underscoring a more cautious stance among market participants during the shortened trading period.
Sectoral performance presented a mixed picture. The Banking Index recorded a 0.7% gain, supported by continued interest in financial stocks, while other sectors closed in negative territory. The Insurance Index fell by 4.2%, the Consumer Goods Index declined by 1.7%, and the Industrial Goods Index slipped by 0.2%. The Oil and Gas Index ended the week flat, reflecting balanced sentiment within the energy space.
Analysts attribute the subdued trading activity to both the holiday-induced shorter week and a wait-and-see approach by investors positioning ahead of first-quarter 2026 earnings releases. Market participants are increasingly selective, focusing on fundamentally strong stocks and dividend-yielding counters.
On the global stage, developments in the oil market remain a key driver of sentiment. Crude prices surged past the $110 per barrel mark amid escalating geopolitical tensions between the United States and Iran. Brent crude rose by $7.96, representing a 7.9% increase to settle at $109.12 per barrel.
Market watchers note that the rally is being fueled by fears of prolonged supply disruptions, particularly around strategic routes such as the Strait of Hormuz. Concerns over tightening global supply and potential economic fallout have further reinforced bullish sentiment in oil markets.
For Nigeria, rising oil prices present a dual-edged outlook—boosting government revenues while also raising inflationary pressures that could influence monetary policy decisions and broader economic stability.
Looking ahead, analysts at Cordros Capital expect the market to maintain a cautious bias, with selective positioning dominating as investors anticipate Q1 2026 earnings releases. They noted that bargain hunting in undervalued stocks could persist, while dividend announcements and corporate actions—particularly within the banking sector—are likely to sustain interest.
Similarly, analysts at InvestData Consulting Limited project that the market will trade within a narrow range in the near term, albeit with a slight bullish tilt. They highlighted that elevated oil prices could support energy stocks, while banking and consumer goods sectors may continue to experience mixed sentiment due to profit-taking and valuation concerns.
Overall, the NGX appears set for a period of cautious optimism, as investors balance improving macro tailwinds with persistent global uncertainties.