Nigerian stocks hit record high as banking, Dangote shares power $98 billion weekly trade

Nigeria’s stock market climbed to a fresh record in the first week of May, extending one of the world’s strongest equity rallies this year as investors increased bets on banking and industrial stocks despite lingering economic pressures.

• Nigeria’s benchmark stock index rose to a record 244,775.83 points in the first week of May.
• Trading activity jumped sharply, with investors exchanging shares worth N324.3 billion ($202 million).
• Banking, cement and insurance stocks led gains, while oil and gas shares lagged.
• Dangote Cement, GTCO, Ecobank and First HoldCo helped drive the market rally.

The Nigerian Exchange’s All-Share Index rose 1.03% during the week to close at 244,775.83 points, while market capitalisation increased to N157.09 trillion ($98 billion), according to market data released after Friday’s trading session.

The rally added about 2,498 points to the benchmark index and pushed the market to its highest weekly close on record, reinforcing investor appetite for Nigerian equities after months of strong gains.

Trading activity also accelerated sharply. Investors traded 7.08 billion shares worth N324.35 billion ($202 million) in 474,436 deals during the week, up from 4.84 billion shares valued at N287.76 billion a week earlier.

Financial services stocks dominated activity, accounting for more than 60% of traded volumes, led by heavy trading in Access Holdings, VFD Group and CWG.

The gains came even as investors navigated volatile trading sessions during the week.

After opening strongly on Monday, the market slipped on Tuesday, recovered modestly on Wednesday, and weakened again on Thursday before rebounding sharply on Friday to end the week in positive territory.

Industrial stocks led sectoral performance, with the NGX Industrial Goods Index rising 5.11%. The rally was largely driven by a 12.16% jump in Dangote Cement and gains in BUA Cement.

Chemical and Allied Products surged 60.95%, while Berger Paints advanced 32.84% and Meyer gained 17.5%, reflecting renewed investor interest in construction-linked and manufacturing stocks.

Insurance shares also posted strong gains, helping the NGX Insurance Index rise 4.01%, its first major jump in the second quarter. Sovereign Trust Insurance, Prestige Assurance and Linkage Assurance were among the sector’s top performers.

Banking stocks remained a major driver of the broader market rally. The NGX Banking Index rose 1.89%, supported by gains in Ecobank, GTCO, First HoldCo and Fidelity Bank.

The market’s positive momentum comes as investors continue to reposition around earnings releases, recapitalisation plans and expectations that Nigeria’s elevated interest-rate environment could sustain strong banking profits in the near term.

First HoldCo drew investor attention after reporting first-quarter earnings and unveiling plans to raise N321 billion ($200 million) to strengthen its capital base ahead of tighter banking capital requirements introduced by the Central Bank of Nigeria.

Airtel Africa also released its full-year results during the week, while companies including Presco, Eterna and C&I Leasing published first-quarter earnings updates.

Consumer goods stocks also advanced, lifted by a 33.43% rise in Dangote Sugar Refinery shares. Oil and gas stocks, however, lagged the broader market, with the sector index falling 3.27% after declines in Aradel Holdings.

Market breadth remained positive, with 69 stocks gaining during the week compared with 36 decliners.

Some of the week’s biggest gainers included Chemical & Allied Products, FTN Cocoa Processors, RT Briscoe and Tantalizers. On the losing side were Nigerian Aviation Handling Company, Guinness Nigeria, Access Holdings and MTN Nigeria.

Nigeria’s stock market has been one of Africa’s standout performers over the past year, supported by banking reforms, currency adjustments and rising investor demand for equities as inflation erodes returns in fixed-income assets.

The All-Share Index has now returned more than 57% year-to-date, underlining the scale of the rally despite persistent concerns over inflation, naira volatility and slowing consumer spending in the country.