NGX Investors Gain N432bn as Equities Extend Rally in Shortened Salah Week

Nigerian equities closed the shortened Eid-el-Kabir trading week on a positive note, with investors gaining N432 billion as renewed buying interest in blue-chip and mid-cap stocks lifted market performance despite profit-taking pressures earlier in the week.

The benchmark All-Share Index (ASI) rose by 673.1 points week-on-week to close at 250,385.48 points from 249,712.37 points recorded in the previous week. Consequently, market capitalisation increased from N160.077 trillion to N160.509 trillion, adding N432 billion to investors’ wealth.

The market operated for only three trading sessions after the Federal Government declared Wednesday and Thursday public holidays to mark the 2026 Eid-el-Adha celebrations.

Despite the shortened trading week, the Nigerian Exchange (NGX) maintained its bullish momentum, with the market posting a year-to-date return of 60.90 per cent, underlining sustained investor confidence in the domestic equities market.

Trading on Friday reflected renewed optimism as investors returned from the holiday break with increased demand for selected large- and mid-cap stocks ahead of the June 1 transition to the T+1 settlement cycle.

The All-Share Index gained 0.26 per cent on the day, while market activity strengthened significantly, with trading volume rising by 29.87 per cent and value traded increasing by 28.50 per cent.

Sectoral performance was largely positive, representing an improvement from the weak sentiment recorded in the preceding week.

The Oil and Gas Index emerged as the standout performer, advancing 4.53 per cent at the close of the week and extending its year-to-date return to an impressive 120.89 per cent.

The rally was driven largely by sustained buying interest in major energy stocks, including Oando and Aradel Holdings.

Market turnover, however, declined on a weekly basis due to the reduced number of trading sessions. A total of 2.398 billion shares valued at N111.48 billion were exchanged in 241,313 deals during the week, compared with 3.875 billion shares worth N161.76 billion traded in 334,745 deals in the previous week.

Analysis of trading activity showed that the Financial Services sector remained the dominant driver of market transactions. The sector accounted for 1.656 billion shares valued at N48.23 billion in 94,812 deals, contributing 69.07 per cent of total traded volume and 43.26 per cent of total traded value.

The Services sector followed with 265.45 million shares worth N4.53 billion traded in 19,443 deals, while the Information and Communications Technology sector ranked third with 101.85 million shares valued at N9.16 billion in 24,858 deals.

The most actively traded stocks by volume were Fidelity Bank Plc, Access Holdings Plc and The Initiates Plc, which jointly accounted for 903.68 million shares worth N19.23 billion in 22,238 deals. Together, the three stocks contributed 37.69 per cent of total market volume and 17.25 per cent of total market value traded during the week.

Global Markets Mixed

Across global markets, investor sentiment remained broadly positive as easing geopolitical tensions in the Middle East helped calm concerns over potential disruptions to global energy supplies.

In the United States, major indices extended their gains, supported by strong corporate earnings and continued enthusiasm around artificial intelligence-related investments.

The S&P 500 rose 1.03 per cent during the week, while the Nasdaq Composite outperformed with a gain of 2.39 per cent. The Dow Jones Industrial Average also advanced by 0.90 per cent.

European markets were less upbeat. The UK’s FTSE 100 Index declined 0.54 per cent amid profit-taking and lingering concerns over global growth prospects. Weakness in mining and energy stocks, which carry significant weight within the index, also pressured performance.

In Asia, Hong Kong’s Hang Seng Index fell 1.65 per cent as investors locked in profits following recent gains and remained cautious about the pace of China’s economic recovery.

Outlook

Market analysts expect investors to continue monitoring key macroeconomic indicators in the coming week, including movements in global crude oil prices, exchange-rate stability, inflation trends and policy signals from both the Federal Government and the Central Bank of Nigeria.

Attention will also focus on the implementation of the new T+1 settlement cycle and its potential impact on market liquidity and trading efficiency.

With market capitalisation now above N160 trillion and year-to-date returns approaching 61 per cent, analysts believe the domestic equities market remains well-positioned to attract further investor interest, provided macroeconomic conditions remain supportive.