On Tuesday, May 27, 2025, the Nigerian All-Share Index (ASI) posted a strong performance, advancing by 1.57%, which propelled its year-to-date return to 8.43%. This positive movement was driven by broad-based buying interest across key sectors, indicating sustained investor optimism and a favorable market sentiment.

Despite a slight decline in trading volume, from 414.51m shares to 409.57m on Tuesday, market capitalization increased to ₦70.38tr, up from ₦69.29tr on the previous trading day. This suggests that although the volume of transactions showed a mild drop, there was an increase in the value of stocks traded, hinting at higher quality transactions and a growing confidence in market fundamentals.

Sectoral Movement, Key Gainers/Losers

Leading the gainers’ list was AIRTELAFRI (+10.00%), followed by OMATEK (+9.23%) and CORNERST (+8.63%), all of which saw substantial gains due to positive news or strong earnings performance. The significant upward movement in AIRTELAFRI could indicate strong institutional support, with potential continuation of the bullish trend if it breaks through its immediate resistance levels, with key price targets around ₦1000 per share. On the downside, MCNICHOLS (-9.80%), CWG (-9.50%), and CHAMPION (-7.38%) topped the losers’ list. These stocks could be facing profit-taking or market corrections, with MCNICHOLS particularly showing signs of a breakdown below key support levels, suggesting potential further downside if it fails to recover above ₦1.20.

Trading Activity and Liquidity

CUSTODIAN and FIDELITYBK were the most actively traded stocks by volume. The day’s total transaction volume of 409.57m shares was valued at ₦11.1bn, showing a minor drop from the previous volume of 414.51m shares. The lower volume, while signaling a slight pullback in short-term liquidity, is not alarming as the market still managed to register a healthy value of trades, implying sustained investor interest.

In terms of value traded, GTCO led with ₦1.57bn worth of trades, followed by ZENITHBANK (₦1.32bn) and CUSTODIAN (₦752.1m). GTCO’s leading position in terms of value traded is noteworthy, as it signifies its role as a highly liquid stock in the market. The stock seems poised to maintain bullish momentum, especially if it can break through its resistance around ₦30.00 per share. ZENITHBANK is similarly well-positioned, but its relative underperformance compared to GTCO might indicate a potential consolidation phase before the next breakout.

Oil Market Overview

Meanwhile, in the global commodities market, oil prices dipped by approximately 1% on Tuesday, driven by concerns of oversupply, largely due to ongoing developments in U.S.-Iran nuclear talks. Brent crude settled at $64.09 per barrel, while West Texas Intermediate (WTI) closed at $60.89. The market is currently in a neutral-to-bearish short-term outlook as the price is below key resistance levels near $65.00 for Brent and $62.50 for WTI.

The pressure on prices comes from the potential for an increase in global oil supply, particularly if negotiations between the U.S. and Iran lead to the lifting of sanctions, which would allow more Iranian oil to enter the market. Furthermore, expectations of rising U.S. crude inventories could exacerbate supply concerns.

However, there is a potential bullish catalyst as sentiment was somewhat supported by U.S President Donald Trump’s delay of European Union trade tariffs, easing some of the trade tensions that had weighed on the global market. Additionally, Canadian wildfires led to temporary halts in oil production, which may provide some short-term support for prices. Technically, if Brent and WTI can hold above the $60 per barrel level, it could indicate a possible price floor and a reversal in the near future. However, a break below $60 per barrel could set the stage for further declines.

Conclusion

The Nigerian stock market remains on a positive trajectory, supported by strong earnings in key stocks, though caution is warranted as volume has shown a slight decrease. The outlook for the ASI remains bullish in the medium term, particularly if it sustains above key resistance levels. Oil prices, however, face near-term pressure, with factors like U.S.-Iran talks and rising inventories weighing on sentiment. Traders and investors alike will need to closely monitor these developments for signs of trend continuation or reversal.