Market Update For May 4, 2026
The Nigerian equities market carried its strong upward momentum into the new month, reinforcing the dominant bullish tone that has defined recent trading sessions. Investors remained active in positioning across fundamentally sound counters, particularly within the industrial, consumer goods, and energy sectors, where earnings resilience and pricing power continue to attract capital.
Market sentiment stayed broadly positive, supported by sustained liquidity and a continued search for inflation hedges in an environment of elevated interest rates and macroeconomic uncertainty. Institutional investors maintained strategic positioning, while retail participants showed measured engagement, increasingly mindful of entry levels following the sharp rally recorded in recent weeks.
Nonetheless, beneath the surface optimism, there are early signs of caution. The noticeable slowdown in trading activity suggests that while prices are advancing, participation is thinning at higher levels. This divergence typically reflects selective buying alongside profit-taking, especially in stocks that have posted strong gains in the short term. As such, the current phase of the market appears to be transitioning toward a more tactical environment, where stock selection and timing are becoming increasingly important.
On the global front, oil prices remained elevated, continuing to provide a supportive backdrop for Nigeria’s macro outlook and investor sentiment. Brent crude hovered around $110.22 per barrel after touching an intraday high of $114.30, while West Texas Intermediate (WTI) traded near $102.41. The sustained strength in oil prices is being driven by ongoing geopolitical tensions in the Middle East, particularly disruptions in the Strait of Hormuz.
Conflicting reports around military activity involving the United States and Iran have heightened uncertainty in global energy markets. While U.S. authorities denied claims of direct attacks on naval assets, Iran has maintained a firm stance against foreign military presence in the strait, warning of severe consequences. With shipping flows still constrained and no clear resolution in sight, oil prices are likely to remain elevated in the near term.
For Nigeria, this environment presents a supportive external dynamic, as higher crude prices typically translate into improved fiscal revenues and foreign exchange inflows. This has positive implications for macro stability and, by extension, the equities market, particularly energy-linked stocks that benefit directly from stronger oil prices.
Technical Analysis and Outlook
Technically, the NGX All-Share Index (ASI) remains in a strong uptrend, marked by a consistent pattern of higher highs and higher lows. The breakout to a fresh all-time high reinforces bullish sentiment, with momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) signaling continued upside potential.
However, the decline in trading volume alongside rising prices introduces a degree of caution. This divergence suggests weakening participation at elevated levels, which could trigger short-term consolidation or mild pullbacks. Such corrections, if they occur, are expected to be temporary within the broader bullish structure and may offer attractive entry opportunities.
Going forward, the market is likely to remain driven by sector rotation, liquidity flows, and macroeconomic developments. Investors are expected to maintain focus on stocks with strong fundamentals, earnings visibility, and growth potential, while also keeping an eye on global risk factors, particularly developments in the oil market.
The NGX All-Share Index advanced by 0.36% to close at a new all-time high of 243,158.97 points, rising from 242,277.81 in the previous session. Market capitalisation increased by ₦62.66bn to ₦156.06trn, while the year-to-date return strengthened to 56.26%. Market breadth closed positive with 44 gainers against 34 losers, reflecting sustained bullish sentiment. Top gainers were led by NASCON (+17.78%), CAP (+9.99%), DANGSUGAR (+9.97%), MAYBAKER (+9.81%), STANBIC (+9.70%), IMG (+9.56%), UACN (+4.68%), GTCO (+3.70%), CUSTODIAN (+3.21%), BUACEMENT (+2.61%), ETERNA (+0.76%), NB (+0.32%), UBA (+0.12%), VITAFOAM (+0.06%), and ETI (+0.06%), alongside 29 other advancing stocks. On the flip side, NAHCO led the decliners’ chart, followed by other laggards, contributing to a total of 34 losing stocks. Trading activity declined sharply, with total volume dropping by 48.30% to 967.47 million units valued at ₦43.84bn across 122,041 deals. VFDGROUP dominated volume with 255.35 million shares (26.39% of total trades), while ZENITHBANK led in value terms with ₦8.42bn (19.20%), followed by ACCESSCORP and ARADEL, while ACCESSCORP and FIDELITYBK also accounted for 21.09% and 8.22% of total volume, respectively. Notably, CONHALLPLC, CAP, AIICO, and LIVINGTRUST traded at new 52-week highs, reinforcing strong buying interest in select counters.
