Analysts say Nigeria’s equities market will likely maintain its cautious and defensive tone this week, as investors continue to respond to profit-taking pressure and the implications of the recent Monetary Policy Committee (MPC) decision.
The market has been grappling with intensified sell-offs, with investors reassessing positions after the MPC left all policy parameters unchanged, an outcome that typically triggers portfolio realignment, especially with year-end approaching and a pre-election year on the horizon.
Cowry Assets Management Limited noted that the market is still navigating “a delicate balance between caution and emerging pockets of optimism.” Although inflationary pressures, exchange rate volatility, and high borrowing costs remain significant headwinds, the firm observed a gradual buildup of confidence in companies with strong cash flows, disciplined cost management, and diversified earnings.
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Cowry added that some investors have begun positioning ahead of the Q1 2026 dividend season, a trend becoming visible in accumulation-heavy stocks. For the week ahead, the firm expects the equities market to remain cautious, with year-end profit-taking dominating sentiment. However, fundamentally strong and oversold stocks may attract bargain hunters preparing for a potential momentum shift.
Afrinvest Limited echoed this mixed outlook, projecting limited buying activity driven by attractive entry prices following recent dips. Still, the firm warned that the bearish trend could persist due to year-end liquidations tied to festive spending and the looming implementation of Capital Gains Tax (CGT).
Similarly, Imperial Asset Managers Limited predicted that the defensive trading pattern will continue in the near term as the market adjusts from last week’s sell-offs. The firm anticipates a range-bound market with a “selective upward bias,” supported by improving market breadth and ongoing bargain-hunting in strong Banking, Telecoms, and mid-cap stocks.
Market Performance
The benchmark NGX All-Share Index (ASI) closed last week at 143,519.81 points, down 0.14% week-on-week, reflecting the sustained profit-taking trend. Total market capitalisation also fell by the same margin to ₦91.286 trillion, wiping out ₦128 billion in value.
Market sentiment remained weak, with market breadth closing negative—26 gainers versus 68 losers.
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Ikeja Hotel led the gainers with a 45.08% jump to ₦30.25 per share.
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NCR Nigeria followed with 32.97% to ₦54.65, and UACN gained 12.71% to ₦78.90.
On the losers’ side:
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Meyer fell 18.89% to ₦13.10,
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SUNU Assurance dropped 14.78% to ₦3.92,
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UPDC declined 11.93% to ₦5.02.
Trading Activity
Investors traded 4.140 billion shares worth ₦115.889 billion across 102,351 deals, up from 2.668 billion shares valued at ₦106.264 billion exchanged in 107,998 deals the previous week.
Overall, the equities market is expected to remain cautious, with selective opportunities for investors watching for undervalued yet fundamentally strong stocks.
