Investors Gain N5.5trn in Nigerian Market, Stocks Hit Overbought
Equity investors gained N5.5 trillion in the Nigerian stock market over 5 days, supported by strong buying momentum amid the first-quarter (Q1) 2026 earnings release.
However, some stockbrokers have projected the momentum to ease as mid- and high-cap stocks have entered an overbought condition, which often triggers market corrections.
The Nigerian Exchange closed the week on a strong footing, sustaining its bullish run as gains in key large- and mid-cap stocks continued to lift overall market performance.
The benchmark NGX All-Share Index (ASI) advanced by 3.96% week-on-week to settle at 225,724.33 points, while market capitalisation rose by 3.94% to ₦145.34 trillion.
This translates to a net gain of approximately ₦5.51 trillion in investor wealth over the week. Consequently, the year-to-date return strengthened to 45.05%, reflecting sustained optimism and strong risk appetite in the equities space.
Market breadth remained positive at 1.15x, with 53 gainers against 46 decliners, indicating that buying interest was relatively widespread across the market.
In simple terms, more stocks gained than lost, suggesting the rally was not limited to a few names but was supported by broader participation.
Trading activity also reflected heightened investor engagement. The total number of deals, volume traded, and transaction value increased by 16.74%, 6.04%, and 9.58% week-on-week, respectively.
In total, investors exchanged 3.81 billion shares worth ₦214.44 billion across 298,015 deals, highlighting improved liquidity and stronger conviction in market direction.
Sectoral performance was broadly positive, reinforcing the rally’s strength. The Industrial Goods sector led the charge with a 7.07% gain, driven by strong demand for bellwether stocks such as Dangote Cement Plc, Lafarge Africa Plc, CAP, and Berger.
The Banking sector followed closely, advancing by 6.81% on renewed investor interest in FBN Holdings Plc, Ecobank Transnational Incorporated, and Wema Bank. Similarly, the Consumer Goods sector gained 5.56%, supported by sustained buying in NASCON Allied Industries Plc, PZ Cussons Nigeria Plc, and Union Dicon.
The Oil & Gas sector posted a modest gain of 0.86%, as buying interest remained relatively cautious despite declines in some counters. Meanwhile, the Insurance sector recorded the slowest growth at 0.40%, reflecting relatively weaker investor appetite compared to other sectors.
In contrast, the commodity index dipped marginally by 0.41%, suggesting subdued sentiment despite earlier gains in stocks like Aradel. On the performance chart, UACN led the gainers with a 42.0% surge, followed by Union Dicon (+32.7%), NASCON (+32.6%), Transcorp Express (+30.6%), and Zichis (+25.7%), largely driven by strong speculative and momentum-driven buying.
On the flip side, Abbey Mortgage Bank (-33.3%), Guinea Insurance (-15.2%), Stanbic IBTC Holdings Plc (-13.8%), LivingTrust Mortgage Bank (-11.0%), and Sovereign Trust Insurance (-10.1%) topped the losers’ chart, reflecting profit-taking and persistent sell pressure in those names.
Looking ahead, the market is likely to remain broadly positive, supported by strong liquidity and continued investor interest, Cowry Asset Management Limited told investors in its market update.
The firm said, however, the pace of gains may begin to moderate as investors increasingly lock in profits, particularly in stocks that have recorded significant price appreciation.
“This suggests a shift from broad-based buying to a more selective approach, where attention is focused on fundamentally strong and undervalued stocks.
“Notably, while momentum indicators still point to continued upward movement, some are approaching overbought levels as an early signal that the market may be nearing a short-term peak.
“This raises the likelihood of a consolidation phase or mild pullback in the near term. In addition, subtle signs such as easing trading volumes and less consistent breadth suggest that participation may be thinning beneath the surface”, Cowry Asset told investors in an update.
