Nigerian Exchange Hits N122 Trillion as Overbought Signals Emerge; SuperSport Faces Restructuring
Nigeria's stock market reached an all-time high of N122 trillion in early February trading, while technical indicators suggest caution. Separately, DStv's SuperSport division confronts operational changes under Canal+ ownership.
Syntheda's AI financial analyst covering African capital markets, central bank policy, and currency dynamics across the continent. Specializes in monetary policy, equity markets, and macroeconomic indicators. Delivers data-driven wire-service analysis for institutional investors.
The Nigerian Exchange (NGX) surpassed N120 trillion in market capitalization during Monday's trading session before closing at N122 trillion, marking a fresh all-time high for Africa's largest economy by GDP. However, technical analysts are flagging overbought conditions that could signal a near-term correction, according to Nairametrics.
The milestone represents continued momentum in Nigerian equities, which have benefited from increased foreign portfolio inflows and domestic institutional participation. The NGX All-Share Index has climbed steadily since the fourth quarter of 2025, supported by banking sector gains and improved macroeconomic sentiment following the Central Bank of Nigeria's policy adjustments.
Technical Indicators Flash Warning Signs
Despite the bullish price action, market technicians are monitoring several indicators that suggest the rally may be overextended. The Relative Strength Index (RSI) for the NGX All-Share Index has moved into overbought territory, typically defined as readings above 70, which historically precedes consolidation or pullback phases in equity markets.
Nairametrics reported that the exchange's rapid ascent to the N122 trillion threshold occurred within a compressed timeframe, raising questions about sustainability at current valuations. Trading volumes, while elevated, have not kept pace with the price appreciation, suggesting potential participation gaps that could exacerbate volatility during any corrective move.
The banking sector, which comprises approximately 30% of the NGX's total market capitalization, has been a primary driver of the recent gains. Tier-1 banks have posted strong fourth-quarter 2025 earnings, benefiting from naira devaluation impacts on foreign currency positions and increased net interest margins following the CBN's rate hiking cycle that began in mid-2024.
Broader African Market Context
Nigeria's equity market performance contrasts with mixed signals across other major African bourses. The Johannesburg Stock Exchange has experienced modest gains year-to-date, while the Nairobi Securities Exchange continues to face liquidity constraints. Egypt's EGX30 index has shown volatility amid ongoing currency management challenges and regional geopolitical tensions.
Foreign institutional investors have increased allocations to Nigerian equities as part of broader frontier market strategies, attracted by improved transparency following regulatory reforms implemented by the Securities and Exchange Commission of Nigeria. However, currency risk remains a consideration, with the naira trading at approximately 1,650 to the US dollar in the official market as of mid-February 2026.
Media Sector Restructuring Under Canal+ Ownership
In a separate development affecting African media markets, DStv's SuperSport division is undergoing significant operational restructuring under Canal+ ownership, according to BizNews. The changes come as the French media conglomerate integrates its African broadcasting assets following its acquisition of MultiChoice Group.
SuperSport, which holds exclusive rights to major international sporting events across sub-Saharan Africa, including English Premier League and UEFA Champions League fixtures, represents a critical revenue generator for the broader DStv platform. The restructuring is expected to involve operational consolidation and potential staffing adjustments as Canal+ seeks to optimize its African content strategy.
The shake-up reflects broader trends in African pay-television markets, where traditional satellite broadcasting faces mounting competition from streaming platforms and changing consumer preferences. Canal+ has signaled intentions to expand its digital offerings while maintaining SuperSport's premium sports content positioning.
Market Outlook and Risk Factors
Looking ahead, Nigerian equity market participants are monitoring several key variables that could influence near-term performance. The CBN's next Monetary Policy Committee meeting in March will provide guidance on interest rate trajectory, with implications for banking sector profitability and overall market liquidity conditions.
Additionally, crude oil prices remain a critical external factor, given petroleum exports account for approximately 80% of Nigeria's foreign exchange earnings. Brent crude has traded in a range of $75-$82 per barrel during early 2026, providing moderate support for fiscal revenues but below levels that would significantly ease pressure on the naira.
Technical analysts suggest investors should watch for potential profit-taking at current levels, particularly if the RSI remains elevated above 70 for an extended period. Historical patterns indicate that overbought conditions in the NGX have typically resolved through either sideways consolidation or 5-10% pullbacks before resuming upward trends.