By Boluwatife Oshadiya, Markets Reporter | May 18, 2026, 12:10 AM
Key Points
- NGX market capitalisation rose by ₦3.34 trillion to close at ₦160.44 trillion
- All-Share Index advanced 2.27% week-on-week to 250,330.92 points
- Banking, industrial goods, insurance, and consumer goods stocks drove market gains
Main Story
The Nigerian equities market extended its bullish momentum last week as investors added approximately ₦3.34 trillion to the Nigerian Exchange (NGX), pushing the market’s year-to-date return to 60.87%.
Trading data showed the NGX All-Share Index (ASI) climbed by 2.27% week-on-week to settle at 250,330.92 points, while total market capitalisation rose to ₦160.44 trillion, supported by renewed buying interest in large-cap banking and industrial stocks.
The rally was driven largely by gains in heavyweight counters including banking stocks, cement manufacturers, and select consumer goods companies, as investors continued positioning around strong corporate earnings expectations and ongoing market liquidity.
Market breadth closed positive at 2.24x, with 65 gainers outperforming 29 losers, reflecting broad-based investor appetite despite increasing profit-taking activities in some counters.
Trading activity also remained resilient during the week. Investors traded 7.53 billion shares valued at ₦359.93 billion across 398,655 deals. Although the number of deals declined by 14.18% week-on-week, traded volume and value rose by 13.47% and 15.93% respectively.
Sector performance remained largely positive. The NGX Industrial Goods Index led sectoral gains after rising 4.66%, buoyed by strong performances from cement manufacturers including Dangote Cement, Lafarge Africa and BUA Cement.
The Banking Index advanced 2.82%, supported by gains in United Bank for Africa, Access Holdings, Ecobank and Fidelity Bank.
On the gainers’ chart, Berger Paints led the market with a 55.57% appreciation to close at ₦168.95. Other strong performers included SCOA Plc, Daar Communications, Fidson Healthcare, Learn Africa, and Mecure Industries.
However, losses were recorded in select counters including Zichis Agro Allied Industries, NCR Nigeria, Custodian Investment, and Stanbic IBTC Holdings as investors booked profits after recent rallies.
The Issues
The sustained market rally reflects increasing investor confidence in Nigerian equities amid improving corporate earnings and expectations of stronger dividend payouts across major sectors.
Analysts also note that investors are gradually rotating away from fixed-income instruments as inflation-adjusted returns remain pressured despite elevated interest rates. This has redirected liquidity toward equities, particularly fundamentally strong banking and industrial stocks.
However, the sharp rise in the market has also pushed several counters into overbought territory, increasing the likelihood of short-term corrections if profit-taking intensifies. Market watchers are also monitoring macroeconomic risks including inflationary pressure, exchange rate volatility, and monetary tightening by the Central Bank of Nigeria.
What’s Being Said
“Selective buying is likely to persist in strong sectors such as banking, industrial goods, and consumer stocks, while oil and gas and commodity counters may remain weak,” Cowry Asset Management Limited said in its weekly market note.
“Overall sentiment stays constructive, but volatility may increase as the market consolidates recent gains and reacts to macroeconomic developments,” the investment firm added.
Independent market analysts also noted that institutional investors continue to dominate trading activity as foreign portfolio participation gradually improves following relative stability in the foreign exchange market.
What’s Next
- Investors are expected to continue monitoring half-year earnings expectations and dividend outlooks across major listed companies
- Market attention is likely to remain on banking, industrial, and consumer goods stocks amid sustained institutional buying
- Analysts expect increased volatility in the near term as profit-taking activities emerge after the recent rally
The Bottom Line: The Nigerian equities market remains one of the strongest-performing exchanges globally in 2026, with banking and industrial stocks continuing to anchor investor confidence. However, with the market approaching extended valuation territory, sustaining the rally will increasingly depend on corporate earnings strength and broader macroeconomic stability.
