The Nigerian equities market sustained its record-breaking rally in the week ended May 15, 2026, as investors shrugged off weak sentiment around dividend-paying banking stocks and redirected funds into growth-driven counters across the industrial, consumer goods, insurance, and oil and gas sectors.

Despite intermittent profit-taking in tier-one banking stocks following dividend qualification dates and payment adjustments, the Nigerian Exchange Limited (NGX) closed the week on a strong note, underscoring sustained investor appetite for fundamentally sound equities.

Data from the Exchange showed that the NGX All-Share Index (ASI) crossed the 252,500-point mark during the week, while market capitalisation rose to about N161.8 trillion before closing at N160.44 trillion on Friday amid mild selloffs.

The benchmark index eventually settled at 250,330.92 points, preserving one of the strongest rallies in the market’s history and pushing year-to-date returns above 62 per cent.

The market’s resilience was notable because it came at a period when several leading banking stocks experienced softer demand after investors locked in dividend qualification benefits.

Traditionally, post-dividend adjustment periods weaken banking counters. However, investors this time rotated aggressively into non-dividend and growth-oriented equities with strong earnings momentum.

Industrial and consumer goods stocks emerged as major beneficiaries of the shift, helping offset weakness in parts of the banking sector. Sectoral data showed that while the banking index declined by 2.53 per cent during one trading session, gains in industrial goods, insurance, and consumer goods stocks kept the broader market positive.

Trading activity also remained robust, with financial services stocks accounting for the largest share of market turnover. Access Holdings, First HoldCo, and Fidelity Bank dominated trading volumes despite mixed price performance.

First HoldCo led trading activity midweek with about 575.1 million shares valued at roughly N44.4 billion exchanged, highlighting continued liquidity attraction to banking equities even as price momentum moderated.

Market breadth remained positive, with 47 gainers against 28 losers at Friday’s close, reflecting sustained selective accumulation in mid-cap and value stocks.

Speaking at the rally, Chartered Stockbroker and Chief Executive Officer of Sofunix Investment and Communications, Sola Oni, attributed the bullish momentum to macroeconomic reforms, banking recapitalisation, liquidity rotation, and renewed investor confidence.

According to him, the ongoing bank recapitalisation programme directed by the Central Bank of Nigeria (CBN) has strengthened expectations that banks will expand lending capacity and improve profitability over time.

He added that the declining attractiveness of fixed-income instruments has also pushed institutional and retail investors toward equities.

“After aggressive monetary tightening in previous years, there are growing expectations that interest rates may gradually moderate. As yields stabilise, institutional and retail investors are reallocating funds from treasury instruments into equities,” Oni said.

He further noted that relative stability in the foreign-exchange market and reduced volatility in the naira have helped restore investor confidence, encouraging both domestic and offshore participation.

According to Oni, resilient corporate earnings from banks, industrial firms, and consumer goods companies have also sustained market momentum despite inflationary pressures.

“With inflation still elevated, many Nigerian investors now see equities as a better store of value than cash. Stocks with pricing power and hard-asset exposure are attracting capital as investors seek to preserve real returns,” he stated.

He also identified expectations surrounding potential major listings, including the Dangote Refinery and fertiliser businesses, as factors boosting optimism about the future depth and valuation of the Exchange.

“The return of foreign portfolio inflows also signals renewed confidence in Nigeria’s macroeconomic reforms. Increased participation by indigenous retail investors has further reinforced the rally,” Oni added.

He maintained that banking, industrial goods, oil and gas, and insurance stocks are currently driving market momentum, adding that the bullish run could be sustained if macroeconomic conditions continue to improve.

Recent market trends show increasing investor preference for stocks viewed as inflation hedges and long-term value plays. Equities such as Berger Paints, CAP, UACN, Presco, and Aradel Holdings have recorded sharp gains in recent weeks despite not ranking among the Exchange’s biggest dividend payers.

Meanwhile, turnover value across the market has remained elevated, with investors exchanging more than 3.8 billion shares worth over N213 billion in nearly 300,000 deals in one of the strongest recent trading weeks.

Analysts expect bullish sentiment to remain intact in the near term as investors continue positioning ahead of stronger half-year earnings, recapitalisation exercises, and macroeconomic reforms expected to support corporate profitability.

 

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