Bears dominate as NGX market value drops N1.40tn amid broad sell-off
The Nigerian equities market ended February on a cautious note as Bears dominate as NGX market value drops N1.40tn, reflecting renewed profit-taking and declining investor appetite across key sectors.
Data released by Nigerian Exchange Limited showed that the benchmark All-Share Index (ASI) fell by 1.11 per cent week-on-week to close at 192,826.78 points. Market capitalisation mirrored the decline, shedding approximately N1.40tn to settle at N123.763tn.
The development underscores a cooling trend after weeks of sustained gains that had pushed valuations to elevated levels. Analysts say the downturn signals a recalibration phase rather than a structural reversal.
Turnover weakens as investors retreat
A deeper look at market activity reveals that the narrative — Bears dominate as NGX market value drops N1.40tn — was reinforced by a sharp contraction in trading volumes and value.
Total turnover for the week stood at 5.494 billion shares worth N196.709bn in 370,233 deals.
This represents a significant drop compared to the preceding week, when 7.662 billion shares valued at N252.566bn were exchanged.
The decline in liquidity suggests that institutional investors may be trimming exposure, while retail participation also softened amid heightened macroeconomic uncertainty.
Market watchers attribute the cautious sentiment to a mix of profit-booking, portfolio rebalancing at month-end, and global risk-off signals affecting frontier markets.
Financial services maintain dominance
Despite the overall market dip, sectoral analysis shows that the Financial Services Industry retained its leadership position in trading activity. The sector accounted for 3.241 billion shares valued at N82.775bn, contributing 58.99 per cent to total equity turnover volume.
Oil and Gas followed distantly, while the Services Industry secured third position.
The concentration of activity in financial stocks indicates that investors continue to view banks and insurance firms as liquidity anchors during volatile sessions.
Among the most actively traded equities were Zenith Bank Plc, Japaul Gold and Ventures Plc and Fortis Global Insurance Plc. Together, the trio accounted for 1.576 billion shares valued at N33.46bn, representing 28.68 per cent of total traded volume.
Market breadth tilts negative
The market breadth data further supports the conclusion that bears dominate as NGX market value drops N1.40tn.
A total of 69 equities depreciated during the week, compared to 41 in the prior week. Meanwhile, 32 equities recorded price appreciation, down from 71 previously, while 47 remained unchanged.
Such breadth deterioration typically signals broad-based selling rather than isolated sector weakness.
Associated Bus Company Plc led the decliners’ chart, shedding 25 per cent of its share value. Analysts note that thinly traded small-cap stocks often exhibit sharper price swings during bearish cycles.
Pockets of resilience
Despite the overarching sell-off, selective counters delivered notable gains.
Fortis Global Insurance Plc emerged as the top gainer, rising 56.67 per cent to close at N0.94 per share. Okomu Oil Palm Plc appreciated by 20.92 per cent, while Infinity Trust Mortgage Bank Plc climbed 20.63 per cent.
Market strategists argue that these isolated rallies likely reflect stock-specific catalysts rather than broader bullish sentiment.
Nonetheless, the broader takeaway remains intact: bears dominate as NGX market value drops N1.40tn in a week defined by subdued buying pressure.
Regulatory intervention draws attention
A major highlight of the week was the regulatory action taken by the Exchange’s regulatory arm, NGX Regulation Limited.
Effective February 23, 2026, trading in the shares of Zichis Agro-Allied Industries Plc was suspended pursuant to Rule 7.0 of the Exchange’s Rulebook.
According to the NGX, the suspension was implemented in the interest of the investing public and will remain in place pending the conclusion of an investigation into trading activities related to the company’s shares.
Regulatory suspensions typically aim to protect market integrity and prevent potential distortions while inquiries are ongoing.
Market participants say such actions, although necessary, can temporarily dampen confidence, particularly when they coincide with broader volatility.
Macroeconomic backdrop influences sentiment
Beyond stock-specific dynamics, macroeconomic conditions continue to influence investor positioning.
Persistent inflationary pressures, foreign exchange volatility and uncertainty surrounding monetary policy direction have weighed on risk appetite.
Foreign portfolio inflows, while improving earlier in the year, remain sensitive to global interest rate trends and geopolitical developments.
Analysts at leading brokerage firms suggest that the correction phase could present selective entry opportunities for long-term investors, particularly in fundamentally strong banking and consumer goods stocks.
However, they caution that short-term volatility may persist as the market digests earnings releases and policy signals.
Outlook for March
As the new trading month begins, investors will monitor corporate disclosures, dividend announcements and regulatory developments for direction.
The fact that bears dominate as NGX market value drops N1.40tn may serve as a technical reset following the index’s strong rally earlier in the year.
Technical analysts point to key support levels around the 190,000-point mark on the All-Share Index. A sustained break below that threshold could trigger further downside momentum, while a rebound supported by improving turnover would signal renewed confidence.
For now, sentiment remains cautious. The interplay between domestic macroeconomic adjustments and global capital flows will determine whether the Nigerian equities market stabilises or extends its corrective path.
What is clear is that the week’s performance marks a decisive pause in bullish momentum, reinforcing the message that market cycles remain dynamic — and investors must navigate them with disciplined strategy and risk management.
