Market Update For February 25, 2026
The Nigerian Exchange closed mid-week trading on a negative note, extending its short-term corrective movement as investors continued to take profits in major bellwether stocks. The session reflected cautious sentiment, with broad-based sell pressure across banking, consumer goods, insurance, and industrial goods counters weighing on the overall market structure.
After a strong rally earlier in the year that pushed returns to elevated levels, the market is now witnessing portfolio rebalancing and sector rotation. Investors appear to be locking in gains in high-performing counters while adopting a wait-and-see approach amid mixed macro signals and liquidity considerations. The decline was not driven by panic selling but rather by controlled distribution in heavy-cap names that significantly influence the benchmark index.
The banking sector, which has been one of the primary drivers of the market’s year-to-date performance, experienced renewed weakness. Tier-1 lenders saw notable sell pressure, reflecting short-term valuation adjustments and profit realization. Consumer goods and insurance stocks also came under pressure, reinforcing the negative breadth observed at the close of trading.
Despite the bearish sentiment, market participation improved markedly. Total volume traded increased by 19.32% to 1.36 billion units, while total value traded stood at N45.36 billion across 69,642 deals. The rise in activity suggests that institutional players remain active in the market, engaging in repositioning strategies and selective accumulation.
On the volume chart, FTGINSURE led with 193.69 million units traded, accounting for 14.27% of the total market volume. In value terms, ZENITHBANK recorded the highest turnover at N11.07 billion, contributing 24.40% of total traded value. GTCO and ARADEL followed in value rankings, highlighting continued investor interest in highly capitalized and fundamentally strong counters even amid the broader market decline.
In the global commodities space, oil prices maintained their upward bias, hovering near seven-month highs as geopolitical tensions between the United States and Iran fueled concerns over potential supply disruptions. Brent crude rose by 32 cents to $71.09 per barrel, while WTI gained 23 cents to $65.86. Brent recently touched its highest level since late July, supported by fears that any escalation could disrupt supply from Iran, OPEC’s third-largest crude producer. At the same time, OPEC+ is considering increasing output by 137,000 barrels per day in April as producers prepare for peak seasonal demand.
Technical Analysis
Technically, the NGX All-Share Index remains in a short-term corrective channel following its strong upward momentum in previous weeks. The index is currently hovering slightly above the 194,000 psychological support level, which serves as a critical near-term demand zone.
The marginal decline suggests consolidation rather than a confirmed reversal; however, weakening market breadth—evidenced by significantly more decliners than gainers—signals fading upside momentum. Momentum indicators are flattening, and the market appears to be searching for a new equilibrium level.
If the ASI sustains support above 194,000 points, we may see renewed bargain hunting in fundamentally sound stocks, particularly within the banking and energy sectors. However, a decisive break below this support could open the door to further downside toward lower technical support bands.
Volume expansion during a down session typically indicates distribution, suggesting that smart money may be repositioning portfolios. That said, the absence of extreme volatility implies that the correction remains orderly.
Outlook
In the near term, we expect mixed sessions characterized by volatility and sector rotation. Bargain hunters may gradually re-enter oversold counters, especially those with strong earnings outlooks and dividend potential. However, sustained recovery will likely depend on renewed institutional accumulation and improved breadth.
Investors are advised to maintain a disciplined strategy, focusing on fundamentally strong stocks while closely monitoring key support levels and liquidity trends. Medium- to long-term players may view current pullbacks as entry opportunities, while short-term traders should remain cautious amid fragile momentum.
Market Summary
The NGX All-Share Index (ASI) declined by 0.06%, shedding 114.41 points to close at 194,370.20 points from 194,484.61 points in the previous session. Market capitalization dropped by N73.45 billion, while year-to-date (YTD) return moderated to 24.91%. Market breadth closed negative with 54 decliners against 22 gainers, reflecting widespread selling pressure.
Top gainers were led by JAIZBANK, which appreciated by 9.94% to close at N3.65. On the losers’ chart, ABCTRANS fell by 10.00% to N1.98, while RTBRISCOE declined by 9.98% to N2.62.
The most significant laggards weighing on the benchmark index included SKYAVN (-9.98%), VITAFOAM (-9.93%), NGXGROUP (-9.75%), CUSTODIAN (-9.69%), FIRSTHOLDCO (-8.36%), ETRANZACT (-8.30%), FIDSON (-5.76%), NAHCO (-5.71%), UACN (-5.62%), OANDO (-4.30%), UBA (-2.39%), ZENITHBANK (-2.15%), GTCO (-1.67%), and ACCESSCORP (-1.48%), highlighting broad-based weakness across major sectors despite improved trading activity.
