Nigerian stocks opened the week with historic momentum.
First, the Nigerian Exchange closed at a record ₦122 trillion.
Earlier, traders pushed the market beyond ₦120 trillion.
As a result, investors gained about ₦5 trillion in one day.
Notably, the rally marked the strongest rise since May 2023.
Stocks Record Rally
Meanwhile, the All-Share Index climbed 7,949.36 points to 190,262.44.
That move represents a 4.36% increase.
Consequently, month-to-date returns reached 15.1%.
At the same time, year-to-date performance advanced to 22.3%.
Overall, 54 stocks gained while 28 stocks declined.
In particular, Dangote Cement and MTN Nigeria rose 10% each.
Similarly, Nestlé Nigeria delivered notable gains.
Beyond that, investors drove buying across banking and oil sectors.
Read Also: Top Nigerian Stock Gainers – Week Ending Feb 13 2026
Overbought Signals
However, technical indicators now signal stretched conditions.
Specifically, the Relative Strength Index holds above 70.
Typically, that level signals overbought territory.
In addition, traders price many shares above 50-day averages.
Likewise, buyers push several stocks beyond 200-day averages.
Recently, Seplat Energy reached a new high.
Often, sharp rallies trigger profit-taking.
Liquidity And Rotation
Furthermore, liquidity continues to drive the surge.
After regulators raised pension equity limits, funds increased inflows.
Consequently, more capital now chases limited quality stocks.
Inevitably, that pressure pushes valuations higher.
At the same time, dividend yields continue to compress.
As prices rise quickly, yields fall.
Meanwhile, the Monetary Policy Rate stands at 27%.
Therefore, some investors may rebalance portfolios cautiously.
Gradually, sector rotation is emerging.
Investors now shift from growth stocks to defensive names.
Going forward, analysts expect cautious sentiment in coming weeks.
Ultimately, earnings results and dividend declarations will shape direction.
Although the market looks overbought, it does not guarantee a crash.
Still, companies must deliver stronger earnings to sustain gains.
