The equities market sustained its positive momentum in May, with investors gaining N4.514 trillion as renewed interest in financial services and consumer goods stocks boosted overall performance. Market capitalization rose by 2.89 percent, closing at N160.508 trillion in May, up from N155.994 trillion at the start of the month.
Similarly, the All-Share Index (ASI) increased by 8,107.66 points, or 3.35 percent, to close at 250,385.47 from 242,277.81 at the end of April.
However, this performance lagged behind the exceptional rally in April when investors gained N26.185 trillion.
The May rally was mainly driven by gains in financial services, consumer goods, and select industrial stocks.
Speaking with reporters on Sunday in Lagos, Dr. Bennett Eze, Head of Research and Development at the Chartered Institute of Stockbrokers, said the market’s performance reflected a more cautious and selective investment environment.
Eze explained that the slower growth in May was largely due to profit-taking following April’s historic rally. Many investors locked in gains, particularly in banking, industrial, and consumer goods stocks, while the market entered a consolidation phase as valuations were reassessed.
“The slower pace of growth in May could also be linked to rotation into fixed-income instruments, valuation concerns, and global uncertainties. Despite the market’s attractiveness, relatively high yields in fixed-income markets continue to compete for institutional funds, moderating equity inflows.
“Some fundamentally strong stocks became significantly overbought after April’s surge, prompting investors to be more selective in deploying new capital. Lingering concerns about oil prices, geopolitical developments, and global monetary policy also encouraged a cautious approach among foreign investors,” he said.
Eze noted that stability in the foreign exchange market and growing confidence in ongoing economic reforms further boosted investor sentiment. He added that dividend expectations and corporate actions supported demand for strong companies.
Looking ahead, Eze expressed optimism about the market outlook for June and the second half of 2026, though he cautioned that volatility might increase. He projected the market would remain bullish in June but with a focus on earnings sustainability rather than momentum-driven buying. He also anticipated periodic pullbacks following the gains made in the first five months.
“Stable exchange rates could attract more foreign portfolio inflows. Moderating inflation and potential monetary easing later in the year may improve valuations. Bank recapitalization is expected to bolster confidence in financial stocks. Pension funds and institutional investors are likely to retain significant exposure to equities for long-term returns.
“Key risks include inflationary pressures, oil price volatility, potential declines in corporate earnings, and political uncertainties ahead of the 2027 elections,” he said.
On sector outlook, Eze highlighted banking stocks as the market’s top attraction, citing stronger capital bases, earnings potential, digital banking expansion, and improved investor confidence following recapitalization efforts. He also pointed to consumer goods, industrials, insurance, energy, and telecommunications as sectors poised to benefit from economic growth, infrastructure spending, reforms, and strong cash flow.
During the month, the market recorded 18 trading sessions—11 bullish and 7 bearish. Trading activities involved 21.120 billion shares valued at N971.628 billion across 1,453,439 deals, compared to 15.596 billion shares worth N848.972 billion in 1,113,650 transactions in April.
Major gainers included Guaranty Trust Holding, which rose from N135 to N137; Ecobank Transnational, from N80.60 to N97.40; First Holdco, from N64.65 to N70; United Bank for Africa, from N42.75 to N44.50; Airtel Africa, from N3,021.30 to N3,655.70; Eterna, from N32.80 to N34.45; Learn Africa, from N9.30 to N12.75; and Berger Paints, from N81.75 to N147.60.
On the losers’ side, Nigerian Aviation Handling declined from N258 to N189.50, Guinness Nigeria fell from N497 to N402.60, Access Holdings dropped from N27 to N24.05, MTN Nigeria from N915 to N820, and Aradel Holdings from N2,024 to N1,933.80. The share prices of TotalEnergies Marketing Nigeria and Conoil remained unchanged at N640 and N194, respectively.
It was also announced that Nigeria will transition to a T+1 settlement cycle from Monday, June 1.
