Investors in the Nigerian stock market recorded a remarkable gain of ₦3.966 trillion in May 2025, defying global economic uncertainties driven by trade tensions and geopolitical instability.
According to data from the Nigerian Exchange Limited (NGX), the market capitalisation surged to ₦70.662 trillion by the end of May, up from ₦66.496 trillion in April.
Similarly, the NGX All Share Index (ASI) rose by 5.6%, closing the month at 111,742.01 points, compared to 105,800.62 points recorded at the end of April.
Factors Driving the Rally
Market analysts attribute the sustained rally to increased domestic investor confidence and positive sentiment in response to notable corporate actions and improved macroeconomic outlook.
One of the key catalysts was Airtel Africa’s ongoing $10 million share buy-back programme, which spurred optimism and supported gains across major indices.
Further market momentum came from strong performances by blue-chip stocks:
- BUA Foods: +5.3%
- MTN Nigeria: +3.7%
- Transcorp Hotels: +6.5%
Weekly Performance Snapshot
- Week-on-Week (WoW):
- NGX ASI rose by 2.5%
- Market capitalisation increased by ₦1.7 trillion
- Year-to-Date (YtD) return improved to 8.6%
Market activity showed mixed trends:
- Trading volume dipped by 3.5% WoW
- Trading value surged by 59.6% WoW
Sectoral Breakdown
- Consumer Goods Index: +3.8%
- Insurance Index: +1.0%
- Banking Index: +0.7%
- Industrial Goods Index: +0.3%
- Oil & Gas Index: -2.1% (the only sector to close in the red)
Analysts’ Outlook
Analysts at Cordros Research noted:
“While this week’s performance was positive, we expect market sentiment to become cautiously optimistic as global trade tensions and macroeconomic developments continue to shape direction.”
InvestData Consulting Limited echoed a similar sentiment, stating:
“The equities market remains bullish, supported by improved risk appetite. Investors are increasingly positioning in fundamentally strong mid- and large-cap stocks.”
Overall, the market’s performance in May reflects a robust recovery and investor optimism, even as external risks and policy changes remain potential headwinds in the months ahead.
