Stocks cross N160trn valuation on broad-based gains

Nigeria’s stock market has reached a historic watershed moment as its capitalisation surged past the N160 trillion mark on Monday May 11.

This record-breaking valuation underscores a dramatic shift in market dynamics, reflecting heightened investor confidence and a resilient appetite for local equities despite a complex macroeconomic backdrop.

A strategic influx of Foreign Portfolio Investment (FPI), attracted by ongoing currency reforms, has combined with robust local institutional liquidity to push the NGX All-Share Index (ASI) to unprecedented levels of 250,481.42 points while the market capitalisation increased to N160.253 trillion.

The stock market’s recent valuation was buoyed by a wave of broad-based gains across key industrial, banking, oil & gas, and consumer sectors which pushed the returns year-to-date (YtD) to new high of +60.79 percent.

Heavyweight tickers like Dangote Cement which gained N92 or 8.46 percent to N1180, MTNN which also rallied by N18.6 or 2.32 percent to N819.7 and other major advancer helped push the market to its new high.

“Given the sustained interest in large-cap names, market participants appear to maintain a constructive outlook on the broader market, reflecting continued confidence in the strength and resilience of leading equities”, Lagos-based Vetiva Research analysts said in their post-trade commentary.

Other analysts said stellar earnings reports from heavyweight tickers—particularly in the banking and cement sectors—have also provided the fundamental support for this price appreciation.

“The local exchange is expected to maintain its positive momentum into the new month, particularly in the early weeks, as investors continue to digest the Q1’26 earnings results. Protracted geopolitical tensions might also continue to influence market performance, particularly for the Oil & Gas tickers. However, we anticipate momentary profit-taking in recently rallied counters,” CardinalStone Research analysts said in their recent note to investors.

Unlike previous rallies concentrated in a few elite stocks, the current surge at the Lagos Bourse is characterised by broad-based gains, indicating a healthier, more diversified participation across the mid-cap and small-cap categories.

In 94,834 deals, investors exchanged 1.485 billion shares worth N68.454 billion.

“The Nigerian equity market is expected to remain resilient this week, supported by ongoing macroeconomic reforms, elevated oil prices, and sustained foreign investor participation,” said United Capital research analysts in their recent views on the market.

According to them, banking, building materials and oil & gas stocks are likely to stay in focus, “with the Q1 2026 earnings season serving as the next key catalyst for validating current valuations”.

“Looking ahead, potential catalysts such as the FTSE Russell reclassification and a possible Dangote Refinery listing could prove transformative for market depth and foreign capital inflows.

“Nonetheless, near-term headwinds persist, including profit-taking at record index levels, Naira volatility, and broader global risk-off sentiment. Overall, the market is poised to trend higher, albeit with a shift away from broad-based rallies toward a more selective, earnings-driven environment,” they added. (BusinessDay)