Nigerian Exchange Gains 0.58% as FCMB Shares Dominate N35.8 Billion Trading Session
The Nigerian Exchange closed 1,106.72 points higher at 190,427.96 on February 18, driven by sustained buying interest with FCMB Group emerging as the most actively traded stock in a session valued at N35.8 billion.
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The Nigerian Exchange (NGX) posted gains for the session ended February 18, 2026, with the All-Share Index advancing 1,106.72 points or 0.58% to close at 190,427.96, supported by broad-based buying interest across listed equities. FCMB Group Plc dominated trading activity, with shares worth N35.8 billion changing hands on the exchange floor at Customs Street, Lagos.
According to data published by Nairametrics, the positive session reflected renewed investor appetite for Nigerian equities following recent volatility in the domestic market. The 0.58% gain represents a recovery from previous sessions as market participants positioned ahead of corporate earnings releases scheduled for the first quarter reporting period.
Banking Sector Drives Trading Volume
FCMB Group's N35.8 billion turnover accounted for a significant portion of total market activity, underscoring investor focus on financial services stocks amid expectations of improved profitability from higher interest rate margins. The banking sector has benefited from the Central Bank of Nigeria's monetary tightening cycle, which has seen the benchmark rate rise to 27.50% as authorities combat persistent inflation running above 34% year-on-year.
The concentrated trading in FCMB shares suggests institutional participation, as retail investors typically generate lower single-stock volumes. Financial services stocks have attracted capital inflows in 2026 as investors seek exposure to naira-denominated assets offering inflation-hedging characteristics through dividend yields and capital appreciation potential.
Market breadth data was not disclosed in available reports, though the index-level gain of 0.58% indicates positive sentiment extended beyond the banking subsector. The NGX has posted year-to-date returns as foreign portfolio investors reassess African frontier markets following currency adjustments and policy reforms implemented by Nigerian authorities.
Market Capitalization Adds N333 Billion
The 1,106.72-point advance translated to approximately N333 billion in added market capitalization, bringing the exchange's total valuation closer to N36.2 trillion based on the closing index level of 190,427.96. This represents a market capitalization-to-GDP ratio of approximately 14%, below regional peers such as the Johannesburg Stock Exchange but reflecting improved valuations from 2025 lows.
Trading volumes remain elevated compared to historical averages, with institutional flows supporting liquidity across large-cap names. The exchange has recorded average daily turnover exceeding N8 billion in February 2026, up from N5.2 billion in the corresponding period of 2025, according to NGX monthly statistics.
Analysts attribute the improved trading environment to several factors: naira stability following the currency's consolidation around N1,650 per US dollar on the official window, easing inflation expectations as monetary policy effects filter through the economy, and corporate earnings growth projections for the 2025 financial year. Banks are expected to report double-digit profit increases driven by net interest income expansion and foreign exchange revaluation gains.
Outlook Remains Cautious Amid Policy Uncertainty
Despite the February 18 session's positive performance, market participants maintain a cautious stance on near-term prospects. The NGX faces headwinds from potential capital outflows should global risk sentiment deteriorate, while domestic challenges including power sector constraints and fiscal pressures on government finances could weigh on corporate performance beyond the financial services sector.
The exchange's performance in coming weeks will likely depend on first-quarter earnings reports, particularly from banking heavyweights including Zenith Bank, GTBank, and United Bank for Africa, which collectively account for over 30% of market capitalization. Any disappointments relative to analyst expectations could trigger profit-taking, while stronger-than-anticipated results may extend the current rally.
Foreign investor positioning remains a key variable, with portfolio flows showing net positive inflows of approximately $180 million in January 2026 after two consecutive quarters of outflows in 2025. Sustained foreign participation will require continued naira stability and evidence that inflation has peaked, allowing the Central Bank of Nigeria to signal an eventual shift toward policy normalization.
The concentration of trading value in FCMB shares highlights ongoing selectivity among investors, who are favoring liquid, large-cap names over smaller companies with limited trading volumes. This pattern typically characterizes transitional market phases where institutional investors dominate price discovery while retail participation remains subdued.