March 6, 2026/InvestmentOne Report

The Nigerian equities market surged in February, with the All-share index advancing by 16.60% MoM to close at 165,371.77 points. The performance was driven by multiple factors such as, impressive macroeconomic gains, earnings performances and high dividend payouts.

The rally was broad based but primarily driven by strong buying pressures in MTNN (+7,027.74pts), DANGCEM (+4506.53pts), SEPLAT (+2593.56pts), BUACEMENT (+2238.94pts) and NESTLE (+1377.42pts) which more than outweighed the losses in BUAFOODS (-314.05pts), SOVRENINS (-27.13pts), UPDC (-18.75pts), WAPIC (-11.46pts) and ELLAHLAKES (-7.53pts). 

Looking ahead to March 2026, we expect a slight bearish tilt in the broader equities market as investors digests February s outsized rally and the effects of post-rally repositioning. Beyond the sell pressures expected from ex-dividend price adjustments in select large-cap industrial and consumer names, we anticipate moderation to be driven by strategic institutional profit-taking as investors lock in strong first-quarter gains and rebalance their stretched positions.

While domestic liquidity remains buoyant, it may be less able to support further upside momentum at current price levels, given that foreign portfolio participation is still relatively limited and not yet the sufficient to move prices in whichever direction. However, we expect this weakness to be meaningfully cushioned by targeted accumulation in the banking sector stocks, supported by the release of Tier-1 banks audited FY:2025 results and the likelihood of attractive final dividends. This should sustain demand and establish a fundamental support floor for the All-Share Index.

Kindly find HERE, our report, covering our analysis and considerations.