The Nigerian Exchange Limited (NGX) closed strong on Tuesday with equities gaining 1.56 percent, the highest daily growth rate for the month of May.
The NGX All-Share Index advanced from 106,698.50 points to 108,361.10 points while the market capitalisation increased by N1.04 trillion from N67.060 trillion to N68.105 trillion.
This performance lifted the month-to-date return to 2.42 percent and pushed the year-to-date return to 5.28 percent.
Nestle Nigeria Plc was the primary driver of the day’s rally with its share price increasing by N110 or 10 percent to close at N1,210.
The upward trend was also supported by Northern Nigeria Flour Mills and Ecobank Transnational Incorporated (ETI), which gained N7.50 and N2.35 to settle at N82.50 and N25.85, respectively.
Beta Glass added N12.05 to close at N132.80 while Austin Laz rose by 9.94 percent to close at N1.88. The session saw broad-based advances across several sectors with large-cap consumer goods and financial stocks sustaining strong momentum.
Trading activity was robust with 475.46 million shares exchanged in 17,575 deals, valued at N13.90 billion. The most traded stocks by volume included Access Holdings, GTCO, UBA, Sterling Bank and Zenith Bank.
Analysts attribute the positive performance to bargain-hunting and repositioning following the release of Q1 earnings. While earnings season is winding down, investor sentiment remains supported by dividend expectations and interest in fundamentally solid counters.
Market analysts at Vetiva had earlier noted the potential for continued upside in large-cap stocks, especially in the absence of negative macroeconomic surprises.
“With all key first quarter (Q1) earnings out, the market may see a moderation in broad-based buying. Still, sustained momentum in large-cap consumer names could support a green open,” the firm stated.
Despite macroeconomic challenges including currency volatility and elevated inflation, investor participation continues to show resilience.
The consistent presence of demand in blue-chip stocks underscores confidence in the long-term value of well-capitalised firms, particularly those with diversified revenue streams and stable fundamentals.
The equities market is expected to remain sensitive to economic data releases and monetary policy expectations in the coming weeks but current performance indicates solid footing as the second quarter progresses.
