Market Update For May 22, 2026
The Nigerian equities market sustained its upward momentum on Friday, May 22, 2026, as renewed buying interest in selected large- and mid-cap stocks outweighed pockets of profit-taking that had emerged after the market’s recent strong rally.
The positive close reflected continued investor confidence in fundamentally sound counters across key sectors of the market, particularly banking, industrial and energy stocks, as traders continued portfolio repositioning ahead of the end of the second quarter. Despite cautious sentiment in some segments of the market due to elevated price levels and profit-booking activities, sustained demand in blue-chip counters helped the domestic bourse maintain its bullish trajectory.
Buying interest in heavyweight stocks such as Oando Plc, Nigerian Breweries Plc, Stanbic IBTC Holdings Plc, BUA Cement Plc, United Bank for Africa Plc, NGX Group Plc and First HoldCo Plc contributed significantly to the market’s positive performance, helping to offset losses recorded in some profit-taking counters.
Investor sentiment during the session remained relatively upbeat as market participants continued to react to strong corporate fundamentals, dividend expectations and improved liquidity within the financial system. The sustained appetite for banking stocks also reflected expectations of stronger earnings performance amid the prevailing high interest rate environment.
Trading activity, however, closed on a mixed note as investors exchanged 711.86 million shares valued at N29.08bn across 62,386 deals, representing a 32.76% decline in traded volume compared to the previous session. The drop in transaction volume indicates a level of caution among traders at current market levels, especially after the strong rally recorded in recent weeks.
Activity on the volume chart was dominated by Fidelity Bank Plc, which recorded 198.08 million shares worth N4.59bn, accounting for 27.83% of total volume traded and 15.80% of total market value. Access Holdings Plc and Mutual Benefits Assurance Plc also ranked among the most actively traded stocks by volume, reflecting continued retail and institutional participation in the financial services sector.
On the value chart, Aradel Holdings Plc and Zenith Bank Plc followed Fidelity Bank as investors continued to position in fundamentally strong and highly capitalised counters. The sustained interest in these stocks underscores investors’ preference for quality names with resilient earnings outlook and attractive dividend potential.
Sector performance during the session reflected selective buying pressure across key segments of the market. The banking sector remained one of the major drivers of market performance as investors continued to accumulate tier-one banking stocks on the back of strong earnings expectations and attractive valuation metrics. The energy sector also witnessed increased attention following renewed gains in oil prices in the international commodities market.
Meanwhile, global oil prices rebounded on Friday as investors weighed uncertainty surrounding the prospects of a breakthrough in U.S.-Iran negotiations while also positioning ahead of the commencement of the U.S. summer driving season, which is expected to support fuel demand.
Brent crude futures rose by 1.54% to trade at $104.16 per barrel, while U.S. West Texas Intermediate crude gained 1.21% to settle around $97.52 per barrel. Despite the rebound, both crude benchmarks remained on track for weekly losses due to fluctuating market expectations over the possibility of a peace agreement between the United States and Iran.
Market sentiment in the oil market remained volatile after reports indicated that negotiations between both countries had shown signs of progress. U.S. Secretary of State Marco Rubio acknowledged positive developments in the discussions but maintained that more work remained before any meaningful agreement could be reached. However, unresolved issues surrounding Iran’s uranium stockpile and control of the Strait of Hormuz continued to keep investors cautious.
The rebound in oil prices provided additional support for energy-related stocks on the Nigerian market, particularly Oando Plc, as investors reacted to improving sentiment in the global energy market.
Technical Analysis and Outlook:
Technically, the Nigerian market maintained its bullish structure as the benchmark index continued to trade above major short-, medium- and long-term moving averages, indicating sustained positive momentum across the broader market. The market’s ability to close in positive territory despite profit-taking pressure further confirms the resilience of the current uptrend.
Momentum indicators across major trading charts still reflect positive market strength, although the decline in transaction volume suggests that some investors are becoming cautious at current price levels following the sustained rally witnessed in recent weeks. The Relative Strength Index (RSI) remains within elevated territory, indicating that the market is approaching overbought levels, which could trigger intermittent pullbacks and profit-taking in the near term.
However, the continued rotation of funds into fundamentally strong stocks, especially within the banking, industrial and energy sectors, is expected to sustain positive sentiment in the market. Institutional investors are also likely to continue selective accumulation ahead of half-year earnings expectations and possible interim dividend declarations.
In the coming sessions, market direction is expected to remain largely influenced by corporate earnings expectations, movements in the fixed income market, foreign exchange stability and developments in the global oil market. Investors are therefore expected to maintain cautious bargain hunting in fundamentally sound counters with strong earnings outlook and dividend potential.
The benchmark NGX All-Share Index advanced by 0.22% to close at 249,712.37 points from 249,175.39 points recorded in the previous session. Consequently, market capitalisation appreciated by N344.23bn, while the market’s year-to-date return strengthened further to 60.47%, reflecting sustained bullish momentum in the equities market.
Market breadth closed positive with 30 gainers against 27 decliners, indicating improved underlying sentiment despite pockets of profit-taking across some sectors.
Top gainers were led by Alexander Forbes Group Holdings Plc, which appreciated by 10.00% to close at N8.14, followed by DAAR Communications Plc which gained 10.00% to settle at N0.99. Red Star Express Plc advanced by 9.56% to close at N34.95 after trading above its 52-week high, while May & Baker Nigeria Plc rose by 7.41% to close at N18.85. Oando Plc also appreciated by 5.00% to settle at N82.95.
On the losers’ table, Trans-Nationwide Express Plc led the laggards after shedding 10.00% to close at N2.34. Eterna Plc declined by 9.92% to N44.05, while Learn Africa Plc lost 9.76% to settle at N5.55. Multiverse Mining and Exploration Plc fell by 9.73% to close at N8.35, while Neimeth International Pharmaceuticals Plc dropped 9.48% to settle at N4.20.
