Nigerian stock market makes 2.49% gain w/w

• The Nigerian stock market NGX All-Share Index (NGXASI) showed steady growth over the week, rising from 109,028.62 points on May 23 to 111,742.01 points on May 30, marking a solid 2.49% increase WTD. This reflects positive investor sentiment over the week despite a slight dip on the final trading day. Sector-wise, consumer goods led WTD gains with a 3.78% rise, followed by banking (0.66%), insurance (1.02%), and industrials (0.35%). Oil and Gas remained the laggard, falling 2.05% WTD, indicating sector-specific challenges.
• On the last trading session of the week, the market turned slightly bearish, with the NGXASI declining by 0.07% to close at 111,742.01 points. Market capitalisation shrank marginally by N47.97m to N70.46trn. Despite this, the month closed positively with a 5.65% gain, signalling overall strength in the market.
• Trading volumes and value surged notably on the final day, with volume jumping 241.61% and transaction value up 273.64%. This spike was largely driven by concentrated activity in UBA, which dominated the volume chart for the second straight session, accounting for 74.43% of total market volume by trading 1.41bn units, highlighting focused investor interest in select stocks despite broader market weakness.
• Sectoral indices all posted declines on the day, led by Oil and Gas, down 0.90%, pressured by heavy losses in CONOIL (-9.99%), JAPAULGOLD (-2.50%), and OANDO (-5.83%). Consumer goods and insurance sectors also weakened by 0.49% and 0.41%, respectively, driven by key stock declines. Banking dipped 0.36% despite gains in ZENITHBANK (+1.03%) and ETI (+4.82%), weighed down by losses in STERLINGNG, FIRSTHOLDCO, and GTCO. Market breadth softened to 0.73x, and the Up/Down ratio fell to 1.67, signalling mild bearish sentiment.
• While the overall market showed resilience with strong monthly gains and increased trading activity, the closing session’s decline and sector-wide losses reflect cautious investor sentiment. Focus remains on high-liquidity stocks like UBA, which continue to attract investor interest. Going forward, sustaining the positive momentum will depend on broader sector recovery and investor confidence, particularly in Oil & Gas and Consumer Goods sectors. 

NASD Summary

• The NASD Over-the-Counter (NSI) market continued its positive streak, rising modestly by 0.10% to close at 3,248.0 points. This brought the week-to-date gain to a solid 1.86%, supported by notable price increases in SDAFRILAND and SDGEFLUID, both up 10%. Market capitalization also grew by 0.10% to N1.9trn, reflecting steady investor confidence in the OTC space. 
• Despite the price gains, trading activity sharply declined on the final session, with volume down 92.76%, value of transactions dropping 86.04%, and the number of trades falling 47.37%. This indicates lower liquidity and reduced market participation despite positive price movements, suggesting cautious investor behaviour or a concentration of trading in fewer, larger transactions.