By Bamidele Famoofo
WorldStage– The Nigerian equities market extended its impressive bullish run in May 2026, building on the strong momentum established in the first quarter of the year. Investor confidence remained elevated, underpinned by robust corporate earnings, improving macroeconomic fundamentals, attractive dividend declarations, and the gradual return of foreign portfolio investors to the market.
The Nigerian Exchange (NGX) All-Share Index (ASI) advanced by 3.35 percent month-on-month to close at 250,385.47 points, compared with 242,277.81 points in April. Consequently, market capitalization expanded by ₦4.52 trillion to ₦160.51 trillion from ₦155.99 trillion in the previous month. The latest gain pushed the market’s year-to-date return to an impressive 60.90 percent, already exceeding the market’s full-year performance in 2025 and reinforcing the strength of the current bull cycle.
Trading activity was broadly positive during the month, reflecting increased investor participation across the market. Average monthly traded volume rose by 28.60 percent to 1.14 billion units from 0.85 billion units recorded in April, while average traded value increased by 17.35 percent to ₦52.95 billion. The number of deals also improved, indicating sustained market engagement despite the rapid appreciation in equity prices and suggesting that investors remained willing to commit fresh capital to the market.
Performance across sectors was predominantly positive, with the Industrial Goods Index emerging as the standout performer after gaining 9.17 percent month-on-month. The rally was largely driven by strong performances from major cement manufacturers, supported by resilient margins, improved pricing power, and sustained demand from construction and real estate activities.
The Insurance Index followed closely, appreciating by 6.12 percent during the month. Investor interest in the sector remained buoyed by ongoing recapitalisation efforts, regulatory reforms, industry consolidation prospects, and stronger-than-expected earnings reported by key operators.
Similarly, the Banking Index gained 3.33 percent, supported by attractive dividend yields, resilient earnings expectations, and improved sentiment toward fundamentally strong banking stocks.
Consumer Goods stocks also ended the month in positive territory, with the index rising 1.19 percent. The sector benefited from improving macroeconomic stability, easing inflationary pressures, and renewed investor positioning in companies with strong earnings visibility and defensive characteristics.
On the downside, the Commodity Index declined by 2.14 percent, weighed down by softer global commodity prices, weaker international demand, and evolving agricultural supply dynamics. Likewise, the Oil and Gas Index fell by 1.92 percent amid declining upstream activity, persistent challenges surrounding OPEC production quotas, domestic crude supply disputes, and lingering infrastructure bottlenecks within the energy sector.
Looking ahead, market sentiment is expected to remain broadly constructive, supported by strong corporate fundamentals, improving economic conditions, and continued liquidity seeking attractive returns in equities.
However, profit-taking activities following the market’s exceptional year-to-date performance could trigger intermittent volatility, particularly in stocks that have recorded substantial gains in recent months.
