Banking, Consumer Stocks Drive N4.5trn Investors Gain in May
The equities market sustained its positive momentum in May, with investors gaining N4.514 trillion as renewed buying interest in financial services and consumer goods stocks lifted overall market performance.
Market capitalisation rose by 2.89 per cent to close at N160.508 trillion in May, compared with N155.994 trillion recorded at the beginning of the month.
Similarly, the All-Share Index (ASI) advanced by 8,107.66 points, or 3.35 per cent, to settle at 250,385.47 from 242,277.81 at the close of April.
The performance, however, trailed the exceptional rally recorded in April when investors gained N26.185 trillion. The market rally in May was largely driven by gains in financial services, consumer goods and selected industrial stocks.
Speaking with the News Agency of Nigeria (NAN) on Sunday in Lagos, Dr Bennett Eze, Head of Research and Development, Chartered Institute of Stockbrokers, said the performance was a reflection of a more cautious and selective investment environment.
According to Eze, the slower growth recorded in May was largely due to profit-taking by investors after the historic rally witnessed in April.
He explained that many investors moved to lock in gains, particularly in banking, industrial and consumer goods stocks, while the market also entered a consolidation phase as investors reassessed stock valuations.
“The slower pace of market growth in May could also be linked to rotation into fixed-income instruments, valuation concerns and global uncertainties.
“In spite of the equity market’s attractiveness, relatively high yields in the fixed-income market continue to compete for institutional funds, thereby moderating the intensity of equity inflows.
“Some fundamentally strong stocks had become significantly overbought after April’s surge, prompting investors to become more selective in deploying fresh capital.
“Also, lingering concerns about oil prices, geopolitical developments and global monetary policy direction encouraged a more cautious approach among foreign investors,” he said.
Eze noted that relative stability in the foreign exchange market and growing confidence in ongoing economic reforms further boosted investor sentiment.
He added that dividend-related positioning and corporate actions also supported demand for fundamentally strong companies.
Looking ahead, Eze expressed optimism about the market outlook for June and the second half of 2026, although he cautioned that volatility might increase.
He projected that the market would remain bullish in June, but with investors focusing more on earnings sustainability rather than momentum-driven buying.
He also anticipated periodic pullbacks following the strong gains recorded in the first five months of the year.
“Continued exchange-rate stability could attract additional foreign portfolio inflows.
“Moderating inflation and potential monetary easing later in the year may improve equity valuations.
“Banking sector recapitalisation is expected to strengthen confidence in financial stocks.
“Pension funds and institutional investors are likely to maintain significant exposure to equities given the long-term return prospects.
“However, key risks include inflationary pressures, oil price volatility, potential weakening of corporate earnings and political positioning ahead of the 2027 election cycle,” he said.
On sectoral outlook, Eze identified banking stocks as the market’s major attraction, citing stronger capital bases, robust earnings potential, digital banking expansion and improved investor confidence following recapitalisation efforts.
He also highlighted consumer goods, industrial goods, insurance, energy and telecommunications stocks as sectors likely to benefit from improving economic conditions, infrastructure spending, sector reforms and strong cash flow generation.
Meanwhile, the market recorded 18 trading sessions during the month, comprising 11 bullish sessions and seven bearish sessions.
Analysis of trading activities showed that investors traded 21.120 billion shares valued at N971.628 billion in 1,453,439 deals during the review period.
This represented an improvement compared with the 15.596 billion shares worth N848.972 billion exchanged in 1,113,650 transactions in April.
Among the major gainers, Guaranty Trust Holding Company rose from N135 to N137, while Ecobank Transnational Incorporated advanced from N80.60 to N97.40.
First Holdco appreciated from N64.65 to N70, while United Bank for Africa gained from N42.75 to N44.50.
Airtel Africa climbed from N3,021.30 to N3,655.70, Eterna increased from N32.80 to N34.45, while Learn Africa appreciated from N9.30 to N12.75.
Berger Paints also posted significant growth, rising from N81.75 to N147.60 during the month.
On the losers’ chart, Nigerian Aviation Handling Company declined from N258 to N189.50, while Guinness Nigeria fell from N497 to N402.60.
Access Holdings depreciated from N27 to N24.05, MTN Nigeria dropped from N915 to N820, while Aradel Holdings dipped from N2,024 to N1,933.80.
Meanwhile, the share prices of TotalEnergies Marketing Nigeria and Conoil remained unchanged at N640 and N194, respectively, throughout the month. Binance Coin Gains 7.3% on High-Volume Spot Buying
