The Nigerian stock market extended its bullish run in May 2026, with investors gaining approximately ₦4.52 trillion as strong performances in industrial, insurance, and banking stocks lifted key market indicators despite weakening market breadth.
Data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) rose by 3.35 per cent during the month, climbing from 242,277.81 points it opened on May 2 to close at 250,385.47 points on May 29.
The market’s year-to-date return also improved significantly, increasing from 55.69 per cent at the beginning of May to 60.90 per cent by the end of May.
In line with the rise in the benchmark index, market capitalisation expanded by 2.89 per cent, growing from ₦155.99 trillion to ₦160.51 trillion at the end of May.
The increase reflects renewed investor confidence and sustained buying interest across several sectors of the market. However, beneath the positive headline figures, market breadth weakened over the review period.
The ratio of advancing stocks to declining stocks fell from a positive 1.15 times to a negative 0.85 times in the review period, indicating that gains in a number of heavyweight stocks largely drove the market higher, even as more stocks declined than advanced.
Sector performance was mixed during the month, with the industrial sector emerging as the strongest performer.
The NGX Industrial Index advanced by 9.17 per cent, rising from 11,218.29 points to 12,246.58 points. The sector’s performance was largely supported by major industrial counters, including BUA Cement, which helped sustain the broader market rally.
The insurance sector also recorded a strong outing, with the NGX Insurance Index gaining 6.13 per cent to close at 1,263.03 points from 1,190.10 points. The sector benefited from strong investor demand for insurance stocks, particularly Sovereign Trust Insurance and International Energy Insurance.
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The banking sector maintained positive momentum, with the NGX Banking Index rising by 3.33 per cent from 2,282.27 points to 2,358.17 points. Trading activity remained concentrated in major banking stocks such as Access Holdings, United Bank for Africa (UBA), and Fidelity Bank, which collectively accounted for a significant share of market turnover during the month.
Consumer goods stocks posted modest gains, with the NGX Consumer Goods Index increasing by 1.19 per cent to 4,904.64 points from 4,847.01 points.
In contrast, the oil and gas sector underperformed the broader market. The NGX Oil and Gas Index declined by 1.92 per cent to 5,979.61 points from 6,096.94 points. The NGX Commodity Index also fell by 2.14 per cent, closing at 2,009.03 points compared with 2,052.86 points a month earlier.
Trading activity remained robust throughout the month as investors exchanged 1.87 billion shares across 92,353 deals on the last trading day of April. By May 29, daily traded volume had moderated to 1.2 billion shares, but transaction count remained elevated at 93,626 deals, reflecting sustained investor participation and portfolio rebalancing activities.
At the individual stock level, Berger Paints emerged as the best-performing stock in May, recording an impressive gain of 80.55 per cent as its share price rose from ₦81.75 to ₦147.60. International Energy Insurance followed with a 64.36 per cent increase, while FTN Cocoa Processors appreciated by 62.73 per cent.
Other notable gainers included Associated Bus Company, which advanced by 58.65 per cent, Zichis Agro Allied Industries with a 51.52 per cent gain, and Mecure Industries, which appreciated by 50.87 per cent. SCOA Nigeria also rose strongly by 45.92 per cent, while Fidson Healthcare, Learn Africa and Deap Capital Management & Trust completed the list of the market’s top ten performers.
The strong showing by Mecure Industries and Fidson Healthcare highlighted growing investor interest in healthcare stocks during the month, making the sector one of the standout beneficiaries of market rotation.
The building and infrastructure space also attracted attention, particularly through the remarkable rally in Berger Paints. However, major building material companies such as Lafarge Africa and BUA Cement remained relatively stable, posting only marginal changes during the period.
Performance among conglomerates was mixed. While SCOA Nigeria delivered substantial gains, Transnational Corporation recorded only a modest increase from ₦44.50 to ₦46.00, representing a gain of 3.37 per cent, which was overshadowed by stronger-performing stocks elsewhere in the market.
On the downside, Nigerian Aviation Handling Company (NAHCO) led the losers’ chart after shedding 26.55 per cent of its value, with its share price falling from ₦258.00 to ₦189.50. NCR Nigeria and Guinness Nigeria both declined by 18.99 per cent, while Fortis Global Insurance lost 14.53 per cent.
Industrial and Medical Gases Nigeria fell by 11.19 per cent, while Access Holdings declined by 10.93 per cent despite the generally positive performance recorded by the banking sector. MTN Nigeria Communications also faced selling pressure, dropping 10.38 per cent during the month.
Other notable laggards included UPDC, The Initiates, and PZ Cussons Nigeria, all of which recorded declines as investors shifted funds towards sectors and stocks perceived to offer stronger near-term returns.
Within the banking sector, performance remained mixed. Zenith Bank posted a marginal gain, rising from ₦130.50 to ₦131.10, while UBA appreciated from ₦42.75 to ₦44.50. Access Holdings, however, struggled and ended the month lower than it opened in May.
Looking ahead, analysts at Cowry Research expect the market to remain cautiously positive, with stock-specific opportunities likely to dictate investor sentiment.
“Weak market breadth and subdued trading activity suggest continued fragile sentiment, while elevated fixed-income yields may sustain occasional portfolio shifts away from equities.
“Nonetheless, selective opportunities may emerge in fundamentally strong counters, particularly in the banking and insurance sectors, as investors remain focused on earnings resilience and dividend prospects,” they added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X