Investors celebrated significant gains as Nigeria’s stock market surged by N3.966 trillion in May 2025.
The Nigerian Exchange Limited (NGX) defied global economic uncertainties, demonstrating remarkable resilience during the period.
Market capitalisation climbed to N70.662 trillion, up from April’s N66.496 trillion closing figure.
Similarly, the All-Share Index rose 5.6% to settle at 111,742.01 points, reflecting growing investor confidence in domestic equities.
Analysts attributed the bullish trend to renewed optimism among local investors and corporate actions.
Airtel Africa’s ongoing $10 million share buy-back programme particularly boosted market sentiment, attracting fresh capital inflows.
Several blue-chip stocks contributed to the rally, with BUA Foods gaining 5.3% and MTN Nigeria rising 3.7%.
Transcorp Hotel led gainers with 6.5% growth as investors accumulated fundamentally strong stocks across sectors.
Weekly data showed sustained momentum, with the ASI advancing 2.5% and market cap adding N1.7 trillion. Year-to-date returns reached 8.6%, indicating steady recovery from earlier market fluctuations.
Sectoral performance remained largely positive, with consumer goods stocks leading at 3.8% growth.
Insurance, banking and industrial goods indices followed with modest gains, while oil and gas declined 2.1% amid sector-specific challenges.
Trading activity presented mixed signals as volume dipped 3.5% while value jumped 59.6%, suggesting increased interest in premium stocks.
Market watchers interpreted this as investors targeting quality assets despite prevailing uncertainties.
Financial experts maintained cautious optimism about the market’s outlook.
Cordros Research analysts noted global trade tensions could temper enthusiasm, urging investors to monitor macroeconomic indicators closely.
InvestData Consulting echoed this sentiment, acknowledging improved risk appetite but warning about oil market volatility.
They emphasized corporate earnings and policy developments would likely dictate future market direction.
The May performance underscores Nigerian equities’ ability to weather external pressures.
While analysts expect continued growth, they advise portfolio diversification and disciplined investment strategies moving forward.
Market participants remain hopeful domestic economic improvements will sustain the positive trajectory.
However, they recognize global headwinds may occasionally disrupt momentum, requiring adaptive investment approaches.
The remarkable N3.966 trillion gain demonstrates the market’s recovery potential, offering encouragement to both retail and institutional investors.
This development positions Nigerian equities as an attractive option in emerging markets.
Observers will watch June trading sessions for confirmation of this bullish trend. The market’s ability to maintain this pace could signal broader economic stabilization and growth prospects.
Ultimately, the May rally provides valuable insights into investor behavior during uncertain times.
It highlights opportunities within the Nigerian market while reminding stakeholders of inherent volatility risks.
Financial advisors recommend balanced exposure across sectors to maximize returns while managing risks.
They stress the importance of fundamental analysis in stock selection amid fluctuating market conditions.
As Nigeria’s capital markets continue evolving, such performances reinforce their role in wealth creation.
The May outcome serves as both encouragement and reminder of the dynamic nature of equity investments.
