Despite ongoing global uncertainties driven by persistent trade wars, the Nigerian stock market delivered a remarkable performance in May 2025, with investors gaining approximately N3.966 trillion on the Nigerian Exchange Limited (NGX).
According to market data, the total market capitalisation—which reflects the overall value of listed stocks—rose to N70.662 trillion by the end of May, up from N66.496 trillion in April 2025. Similarly, the NGX All-Share Index (ASI) recorded a significant 5.6% increase, closing the month at 111,742.01 basis points, compared to 105,800.62 at the end of April.
Market analysts attribute the robust performance to renewed confidence among domestic investors and resilient market sentiment, though they urge caution as global economic conditions remain volatile.
Weekly market data further supports the uptrend, with the NGX ASI climbing by 2.5% Week-on-Week (W/W), while market capitalisation grew by N1.7 trillion. As a result, the Year-to-Date (YtD) return advanced to 8.6%, highlighting the sustained bullish tone of the market.
A major contributor to this upward movement was investor reaction to Airtel Africa Plc’s ongoing $10 million share buy-back programme, which provided significant lift to the broader market. Additionally, individual stock performances also played a key role, with BUA Foods appreciating by 5.3%, MTN Nigeria up 3.7%, and Transcorp Hotel gaining 6.5%.
In terms of market activity, results were mixed. While trading volume declined by 3.5% W/W, trading value surged by 59.6% W/W, indicating a strong value-based buying interest. Sectoral performance was largely positive:
Consumer Goods Index rose by 3.8%,
Insurance Index climbed by 1.0%,
Banking Index increased by 0.7%, and
Industrial Goods Index advanced by 0.3%.
However, the Oil & Gas Index was the only sector to close negative, down 2.1%.
Looking ahead, analysts at Cordros Research expect market sentiment to remain cautiously optimistic, noting that global uncertainties—particularly surrounding international trade tensions—will continue to influence investor behavior. They added that macroeconomic updates and corporate earnings will be critical in determining the market’s direction in the near term.
InvestData Consulting Limited analysts echoed similar views, stating that bullish investor positioning continues to reflect an improving risk appetite, even as global oil markets react to evolving supply dynamics and policy cues.
Despite a global employment forecast downgrade of up to 7 million jobs in 2025, and a neutral stock market sentiment following the Central Bank of Nigeria’s decision to maintain the Monetary Policy Rate at 27.5%, investor enthusiasm in Nigeria remains strong, underpinned by broad-based accumulation in fundamentally sound large- and mid-cap equities.
