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By Chukwuma Umeorah
The Nigerian Exchange (NGX) recorded one of its strongest weekly performances in recent history as investors collectively added approximately N8.14 trillion to market capitalization during the week ended February 20, 2026. Analysts attributed the surge largely to strong demand for heavyweight stocks, particularly in the financial services sector, which sustained broad-based buying across major market segments.
The All-Share Index (ASI) advanced by 6.95 per cent, closing the week at 194,989.77 points, up 12,676.69 points from 182,313.08 recorded at the end of the previous week. Consequently, total market capitalization rose to N125.164 trillion from N117.027 trillion, reflecting a renewed investor confidence and a strong appetite for equities among both retail and institutional investors.
Trading activity also experienced a significant uptick, with 7.662 billion shares valued at N252.566 billion exchanged across 345,118 deals. This marked a sharp increase compared with 4.652 billion shares worth N193.326 billion traded in 286,751 deals in the preceding week, underscoring heightened market participation. The market advanced in four out of five trading sessions, signalling sustained optimism among investors.
The financial services sector emerged as the primary driver of market activity, accounting for 73.41 per cent of total traded volume. Banks and other financial institutions exchanged 5.625 billion shares valued at N113.599 billion in 129,729 deals. The services sector followed, with 493.131 million shares worth N5.866 billion traded in 30,396 deals, while the oil and gas sector recorded 425.657 million shares valued at N35.742 billion across 23,136 transactions.
Among individual equities, FCMB Group Plc, Access Holdings Plc, and Zenith Bank Plc dominated trading activity. Together, they accounted for 3.594 billion shares valued at N69.147 billion in 33,802 deals, representing 46.90 per cent of total market volume and 27.38 per cent of market value. These banking heavyweights were largely responsible for the strong weekly rally, buoyed by robust investor interest in high-cap stocks with strong fundamentals.
Market breadth during the week remained positive. A total of 71 equities advanced, 41 declined, while the remainder held steady. Notable gainers included Zichis Agro Allied Industries Plc (+60.74 per cent), Japaul Gold & Ventures Plc (+60.16 per cent), and Infinity Trust Mortgage Bank Plc (+59.09 per cent).
On the other hand, R T Briscoe Plc (-20.78 per cent), Mecure Industries Plc (-18.99 per cent), and Tripple Gee And Company Plc (-18.80 per cent) were among the top decliners, reflecting isolated profit-taking activity in specific counters.
The week’s rally extended the momentum from the previous trading week and elevated the year-to-date ASI return to 25.95 per cent, reinforcing the perception of sustained bullish sentiment within the market. Cowry Research, in its latest weekly outlook, noted.
“Market sentiment is expected to remain broadly positive, underpinned by strong investor confidence and heightened trading activity. However, following such a sharp weekly advancement, intermittent profit-taking could trigger mild pullbacks. Even so, the underlying tone remains bullish, with investors likely to become more selective and tilt toward fundamentally sound counters as the rally matures. We continue to advise investors to position in fundamentally sound stocks.”
Macroeconomic developments also contributed to the positive performance of the equities market. The naira strengthened by 0.68 per cent at the official window, closing at N1,346.32 per dollar, while the parallel market recorded a 4.44 per cent appreciation to N1,333.28 per dollar. Nigeria’s external reserves rose by 2.04 per cent to $48.50 billion. Additionally, crude oil prices rebounded during the week, with Brent crude trading at $72.08 per barrel, West Texas Intermediate (WTI) at $66.89 per barrel, and Bonny Light at $73.98 per barrel, representing a 1.30 per cent increase.
The fixed income market reflected growing investor interest in safer assets. Secondary bond yields declined by nine basis points to 16.02 per cent, while sovereign Eurobond yields compressed by 11 basis points to 6.89 per cent.
Money market rates eased marginally, with the overnight lending rate declining seven basis points to 22.71 per cent, despite tighter liquidity conditions arising from the Central Bank of Nigeria’s (CBN) recent sterilisation measures.
Economic indicators suggested a stabilising macroeconomic environment. Headline inflation eased to 15.10 per cent year-on-year in January 2026, marking the tenth consecutive month of disinflation. The moderation was driven largely by lower food prices and relative naira stability. Cowry Research, however, warned that inflation could temporarily reverse above 15 per cent later in the year due to base effects and election-related spending pressures, even as structural reforms are expected to support medium-term price stability.
Looking ahead, market participants are awaiting the outcome of the CBN Monetary Policy Committee (MPC) meeting scheduled for next week. Analysts suggest that the MPC’s decisions on liquidity management and interest rate policy could significantly influence near-term market direction, including trading activity, investor sentiment, and asset allocation strategies.
Cowry added that the combination of strong corporate earnings expectations, improved macroeconomic signals, and renewed investor confidence appears to have set the Nigerian equities market on a firm upward trajectory, with investors carefully positioning themselves for potential gains in fundamentally strong stocks as the rally matures.
