Investors Gain N1.68trn Amid NGX Index Climb of 2.49%

…as UBA drives volume surge

The Nigerian Exchange (NGX) All-Share Index rewarded investors with a solid 2.49 per cent gain last week, rising from 109,028.62 points to close at 111,742.01 points on May 30. This translated into an impressive market capitalisation increase of approximately N1.68 trillion, boosting the total to around N70.46 trillion.

The market continued its strong May performance, recording a cumulative gain of 5.65 per cent for the month, further enriching investors who remained positioned in leading stocks. Investor enthusiasm peaked on the final trading day, where trading volumes surged by 241.61 per cent and transaction value increased by 273.64 per cent.

It is, however, worth noting that the surge was largely driven by United Bank for Africa (UBA), which dominated trading volumes for a second consecutive session, accounting for 74.43 per cent of the total market volume by exchanging 1.41 billion shares.

This concentration reflects a strong investor preference for high-liquidity stocks that have delivered steady returns.

Sector performance showed consumer goods leading with a 3.78 per cent weekly gain, followed by insurance (1.02%), banking (0.66%), and industrials (0.35%). However, the oil and gas sector weighed on the market with a 2.05 per cent decline, highlighting ongoing sector-specific challenges that limited broader market advances.

Despite the weekly rally, the final day saw a mild pullback with the NGX All-Share Index slipping 0.07 per cent and a marginal contraction of N47.97 million in market capitalisation. All sector indices fell on the day, with oil and gas companies such as CONOIL (-9.99%) and OANDO (-5.83%) facing significant losses amid profit-taking and cautious trading.

Market breadth softened to 0.73x, and the Up/Down ratio declined to 1.67, signalling selective buying as investors balanced recent gains with sector uncertainties. This trend suggests that while blue-chip stocks provided robust returns, investor caution persists pending a wider sector recovery.

In the NASD Over-the-Counter market, investors also saw gains with the NSI edging up 1.86 per cent over the week, supported by 10 per cent price jumps in SDAFRILAND and SDGEFLUID. However, liquidity dropped sharply on the final day, with volume and transaction value plunging by over 85 per cent, reflecting cautious sentiment despite positive price movements.

Overall, investors reaped substantial returns last week, gaining approximately N1.68 trillion in market value on the NGX.

The continued focus on select blue-chip stocks like UBA and consumer goods firms underpinned this growth, although sustaining momentum will depend on broader sector confidence and market participation.