Nigeria’s equities market closed the month of May with a strong performance, recording a weekly gain of N1.51 trillion in market capitalisation.
The rally was driven primarily by renewed investor interest in consumer goods, industrial, and insurance stocks while profit-taking activities in oil & gas and banking sectors moderated broader gains.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 1.05 percent during the trading week ended Friday, May 30, from 109,710.37 points to 111,742.01 points. Market capitalisation followed suit by rising from N68.953 trillion to N70.462 trillion.
The market’s year-to-date (YtD) return climbed to 8.56 percent as at the close of trading on Friday, while the monthly gain for May stood at 5.62 percent.
The NGX Consumer Goods Index advanced by 5.96 percent, buoyed by strong demand in key names within the fast-moving consumer goods (FMCG) space. The NGX Insurance Index rose by 1.76 percent, and the NGX Industrial Index gained 1.07 percent.
In contrast, the NGX Oil & Gas Index declined by 5.42 percent, following a wave of profit-taking in key upstream and midstream counters.
The NGX Banking Index also recorded a modest decline of 0.88 percent, reflecting subdued sentiment across the financial services sector amid macroeconomic headwinds.
The market experienced three consecutive sessions of positive closes, compared to two days of losses. Analysts noted that bargain hunting in fundamentally sound stocks supported the weekly momentum, especially in sectors perceived as hedges against inflation and naira volatility.
Investor sentiment remained mixed, with a tilt towards consumer and defensive plays, suggesting growing caution in response to policy uncertainties and tight system liquidity.
Nevertheless, increased positioning by institutional investors ahead of half-year earnings releases and dividend declarations added to the week’s upward pressure.
Looking ahead, analysts expect sector rotation to continue as investors seek stability in fundamentally strong counters while remaining cautious of external shocks and local monetary policy shifts.
Key focus areas in the near term include inflation trajectory, exchange rate direction, and potential monetary policy adjustments from the Central Bank of Nigeria (CBN).
Market participants will also be monitoring global cues, particularly U.S. interest rate signals and crude oil price movements, which continue to influence sentiment across frontier and emerging markets.
With market capitalisation now above the N70 trillion mark and investor appetite shifting, the Nigerian stock market enters June with cautious optimism amid a changing macroeconomic landscape.
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