NGX cools after 55% H1 rally as investors watch key 240k/247.5k levels
The Nigerian stock market retreated approximately 4% from its all-time high, with the All-Share Index hovering around 240,800 points after a 55% rally in the first six months of 2026 that pushed market capitalization past N160 trillion. This cool-off represents profit-taking rather than structural weakness, as corporate fundamentals remain strong supported by macro stabilization efforts.
Agricultural and commodity-linked stocks like Presco Plc and Okomu Oil Palm continue to show resilience as inflation hedges, while large-caps such as Dangote Cement, BUA Foods, and MTN Nigeria trade flat. Financial institutions face selling pressure, and energy stocks like Geregu Power saw sharp profit-taking. The market's Price to Earnings Ratio stands at an attractive 6.92x—well below the 10-year average of 11.3x and regional peers.
Technical levels show resistance at 245k–247.5k (with multiple failed break attempts in early June) and support at the psychological 240k level. A conviction break above 247.5k would affirm the bull trend, while holding above 220k maintains the macro-bullish channel. PFAs and domestic money managers are slowly increasing equity participation, providing a downside floor.
With PFAs providing support and key technical levels in play, will you buy the current dip near 240k support, wait for breakout confirmation above 247.5k, or consider fixed-income alternatives given attractive yields?