Nigeria’s equities market extended its historic rally last week as investors shifted attention away from traditional dividend-paying banking stocks and poured funds into growth-oriented companies across the industrial, consumer goods, insurance, and oil and gas sectors. The Nigerian Exchange Limited (NGX) maintained strong momentum despite intermittent profit-taking in tier-one banking equities following dividend qualification dates and payment adjustments.
The market recorded another milestone during the trading week ended May 15, 2026, with the NGX All-Share Index crossing the 252,500-point threshold. Market capitalisation climbed to about N161.8 trillion before settling at N160.44 trillion on Friday after mild selloffs. The benchmark index eventually closed at 250,330.92 points, pushing year-to-date returns above 62 per cent.
Analysts said the resilience of the market was remarkable because it came at a time when banking stocks, which traditionally dominate market sentiment, witnessed softer demand after dividend benefits had been secured by investors. Historically, post-dividend adjustments weaken banking counters, but investors this time rotated aggressively into non-dividend and growth-focused equities with strong earnings potential.
Industrial and consumer goods stocks emerged as the biggest beneficiaries of the renewed appetite for growth shares, helping to offset weakness in parts of the banking sector. Although the banking index declined by 2.53 per cent during one trading session, gains recorded in industrial goods, insurance, and consumer goods stocks kept the broader market firmly positive.
Trading activity remained robust throughout the week, with financial services stocks still accounting for the largest share of turnover. Access Holdings, First HoldCo, and Fidelity Bank dominated trading volumes despite mixed price performances. First HoldCo alone recorded about 575.1 million shares valued at roughly N44.4 billion traded midweek, reflecting sustained liquidity attraction to banking equities even as price momentum slowed.
Market breadth also remained positive, as 47 stocks closed higher against 28 losers on Friday. This reflected continued selective accumulation in mid-cap and value stocks as investors searched for counters capable of preserving value in an inflationary environment.
Chartered Stockbroker and Chief Executive Officer of Sofunix Investment and Communications, Sola Oni, linked the rally to macroeconomic reforms, banking recapitalisation, liquidity rotation, and improving investor confidence. According to him, the Central Bank of Nigeria’s recapitalisation programme has strengthened expectations that banks will expand lending capacity and improve profitability over time.
“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 added that improved stability in the foreign exchange market and reduced volatility in the naira had helped restore confidence among both local and foreign investors. Oni also noted that resilient corporate earnings from banks, industrial firms, and consumer goods companies had sustained bullish sentiment despite persistent 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.
Oni further identified expectations surrounding potential major listings, including the Dangote Refinery and fertiliser businesses, as another driver of optimism in the market. He maintained that banking, industrial goods, oil and gas, and insurance stocks were currently powering the rally, while analysts projected that bullish sentiment could remain intact as investors position ahead of stronger half-year earnings, recapitalisation exercises, and macroeconomic reforms expected to support corporate profitability.
