The Nigerian equities market started February on a reflective note as investors digested the strong gains recorded in January while positioning for the new month. The NGX All-Share Index (ASI) rose by 6.3% in January, closing at 165,370.50 points from 155,613.03 points at the end of December 2025, signaling broad-based growth in equity prices across the market. Correspondingly, the NGX market capitalisation expanded significantly to ₦106.153 trillion, up by ₦6.77 trillion from December, reflecting renewed investor confidence and heightened appetite for fundamentally strong and momentum-driven stocks. Analysts attribute the rally to investors’ expectations of improved earnings for the full year 2025, as well as sustained demand in high-performing sectors such as energy, consumer goods, and financial services.
However, while the monthly performance was strong, the week-on-week (WoW) movement painted a more cautious picture. The market edged into negative territory as investors digested a limited set of full-year 2025 earnings releases. Profit-taking in marquee stocks moderated overall gains: MTN Nigeria fell by 1.4%, First Holdco declined by 8.2%, and Dangote Sugar shed 2.4%, while strong performers like Sky Aviation (+28.7%), ABBEYBDS (+32.4%), and NAHCO (+9.1%) were not enough to offset the broader losses. As a result, the NGX ASI slipped slightly by 0.1% W/W to 165,370.40 points, with Year-to-Date (YtD) returns moderating to +6.3%.
Beyond the market, analysts note that the broader economic implications are significant. The rally in energy and petroleum-related stocks comes against the backdrop of rising global oil prices, which is likely to translate into higher pump prices for petroleum products domestically. Such increases may eventually undermine the purchasing power of low-income earners, as the cost of transportation and goods rises, highlighting the interplay between financial markets and everyday economic realities.
Trading activity during the week was characterized by selective participation, with investors focusing on fundamentally sound names while booking profits in highly liquid stocks. Energy counters like Seplat and Aradel continued to attract attention due to robust operational performance and rising crude prices, while mid-tier banks and consumer goods stocks saw cautious repositioning. Overall, the market reflected a balance between profit-taking and targeted accumulation, signaling a healthy, if measured, market environment.
Looking ahead, investors remain cautiously optimistic for February. Market watchers expect earnings releases, sector rotation, and macroeconomic developments — including policy updates and the trajectory of energy prices — to continue shaping market dynamics. While short-term volatility is likely, the strong start to the year, underpinned by structural reforms, investor confidence, and positive corporate performance, provides a solid foundation for equities to deliver selective opportunities in the weeks ahead.
