All-Share Index nears 255,000 as indicators overheat

LAGOS, Nigeria — The Nigerian equities market is approaching resistance near the 255,000 level as technical indicators show it is becoming overbought, according to a market analysis published on Monday, November 2, 2026.

The All-Share Index has gained more than 63% so far in 2026, and equity market capitalisation has reached ₦165.1 trillion. The analysis says the market remains in a structural primary uptrend. The index set a new high just above 254,000 points in the latest session, after gathering momentum through October.

The daily relative strength index, a measure of recent price momentum, is between 68 and 72. Readings above 70 are generally treated as overbought. The analysis describes the current reading as light overbought territory, and says a short sideways consolidation or a small correction toward support would be acceptable before any further advance.

According to the analysis, October’s rally was supported by institutional buying of large banks, including Guaranty Trust Holding Company and Zenith Bank, and of heavyweight stocks such as Dangote Cement and MTN Nigeria. The author argues that the volume behind those moves points to a genuine breakout rather than a short-lived spike in trading.

The analysis points to a support zone between 244,000 and 245,000 points, which it says could become a level for the market to test on any pullback. It warns that pushing above 255,000 in the near term carries risk while daily indicators remain overbought.

Several risks are identified in the analysis. Changes in fixed-income yields could draw institutional money away from equities. Fund managers may take profits in the fourth quarter ahead of year-end portfolio rebalancing, which could increase volatility. The analysis also warns that stocks trading at high valuations relative to their sectors face a greater risk of sharp corrections.

The analysis suggests that investors who want to buy into the rally may find better entry points on dips toward the 245,000 support zone than by chasing breakouts above 255,000. This is the author’s view and should not be treated as investment advice.