The Nigerian equities market witnessed a robust trading section during the week ended on May 9, 2025 with gains recorded in four out of the five sessions in the week as investors’ interest in large-cap equities led to the creation of additional N2.192 trillion share values for investors.
The week opened with investors expressing a strong buying interest in market large caps, including MTNN (+11.7%), GTCO (+7.9%), DANGCEM (+1.9%), NESTLE (+10.0%), and TRANSCOHOT (+5.9%).
As a result, the All-Share Index advanced by 2.5% w/w to 108,733.40 points.
In value terms, the market capitalisation closed at N68.339 trillion, despite Friday’s reversal which marked a psychological pause suspected to have been driven by profit-taking initiative.
The new market capitalisation mark amounted to a N2.192 trillion gain week-on-weeks when compared to N66.147 trillion posted the previous week. Eventually, month-to-date and year-to-date returns rose to +2.8% and +5.6%, respectively.
Further analysis revealed that market activity was robust, with trading volume and value increasing by 20.7% and 2.5%, w/w, respectively. Similarly, sectoral performance mirrored the positive market sentiment, as the Consumer Goods (+5.4%), Oil & Gas (+4.0%), Banking (+3.1%), Industrial Goods (+1.1%), and Insurance (+1.0%) indices all closed the week higher.
However, market analysts have cautioned investors to watch out for more selective stock picking alongside profit taking in the coming weeks after last week’s market rally. This is evidence in the fact that investors may seek to lock in gains amid the absence of significant positive catalysts to sustain the momentum experience in recent trading sessions.
NASD OTC unlisted equities
Similarly, at the unlisted equities market the week closed on a positive note as the NASD OTC Exchange recorded gains.
The NASD Share Index and market capitalisation advanced by 46 basis points at the close of the week.
Trade volume also increased by 2629.37% to close at 8.48 million units while total value traded higher by 3751.96% to close at N15.74 million signaling strong participation from investors.
Meanwhile, analysts say the 256.25% increase in trade count suggests strong liquidity and sentiment in the market. However, just like the NGX, Friday trading session recorded a negative performance driven primarily by sharp sell-offs in SDGEFLUID (-6.08%), SDCSCSPLC (-5.66%) and SDFCWAMCO (-2.50%), all of which are traditionally viewed as relatively stable plays.
Their inclusion, experts say, signals a broad rebalancing by investors amid tightening liquidity or shifting valuation.
Global market
Global stock markets posted mixed performance during the week under review as investors weighed monetary policy signals from major central banks, including the US Federal Reserve and the Bank of England (BOE), alongside developments in global trade.
At the time of filing this report, US equities exhibited mixed performance (DJIA: +0.1%; S&P 500: -0.4%), with gains supported by positive sentiment around President Trump’s new trade agreement with the United Kingdom and cautious optimism ahead of US-China trade talks, while downside pressure came from early-session losses following President Trump’s 100.0% tariff announcement on foreign films and a selloff in Alphabet shares amid competitive concerns.
Elsewhere, European equities (STOXX Europe 600: -0.1%; FTSE 100: -0.8%) closed the week lower, reflecting investor’ caution on the Bank of England’s rate cut and outlook alongside mixed sentiment around the UK’s new trade agreement with the US. Meanwhile, Asian markets (Nikkei 225: +1.8%; SSE: +1.9%) advanced, buoyed by renewed optimism around US-China trade negotiations, the People’s Bank of China’s plans to lower key interest rates to spur economic growth, and anticipation of fresh fiscal stimulus measures from Beijing. Lastly, the Emerging and Frontier market (MSCI EM: 0.0%; MSCI FM: 0.0%) indices ended the week flat, reflecting cautious global investment sentiments.
Money market and fixed income
The overnight rate expanded by 12bps w/w to 27.0% as debits for the net NTB issuance (N48.33 billion) pressured system liquidity. Accordingly, the average system liquidity, though still healthy, settled at a lower net long position of N915.26 billion (vs a net long position of N1.36 trillion in the previous week).
Treasury bills
The Treasury bills secondary market traded with bullish sentiments as market participants looked to fill unmet bids at the NTB PMA. Consequently, the average yield across instruments declined by 18bps to 23.5%.
Across the market segments, the average yield declined by 10bps and 18bps to 21.0% and 26.9% at the NTB and OMO segments, respectively. At Wednesday’s NTB auction, the CBN offered bills worth NGN550.00 billion – N50.00 billion for the 91D, N100.00 billion for the 182D, and N400.00 billion for the 364D bills.
Total subscription levels settled lower at N1.09 trillion (previous auction: N1.54 trillion), indicating a bid-to-offer ratio of 2.0x (previous auction: 3.9x). The auction closed with the CBN over-allotting to the tune of N598.33 billion – N77.22 billion for the 91D, N38.49 billion for the 182D, and N482.62 billion for the 364D papers – at respective stop rates of 18.00% (unchanged), 18.50% (unchanged) and 19.63% (previous: 19.60%).
The CBN also conducted an OMO auction on Tuesday (6 May), offering instruments worth N500.00 billion – N250.00 billion for the 315D and N250.00 billion for the 329D – to investors. Total subscription settled at N773.74 billion (bid-to-offer: 1.5x), with the CBN allotting N756.74 billion – N40.35 billion for the 315D and N716.39 billion for the 329D.
Bonds
Conversely, the FGN bond secondary market was bearish, driven by investor’s demand for mid-dated bonds. As a result, the average yield advanced by 2bps to 19.1%.
Across the benchmark curve, the average yield increased at the short (+12bps) and long (+2bps) ends, driven by selloffs of the MAR-2027 (+59bps) and APR-2037 (+15bps) bonds, respectively, while it decreased at the mid (-7bps) segment following demand for the APR-2032 (-47bps) bond.
Foreign exchange
The naira depreciated by 1.3% w/w to N1, 610.50/USD, even as the CBN intervened, selling $200.00 million to the market. Meanwhile, gross FX reserves increased for the second consecutive week, growing by USD86.67 million w/w to USD38.10 billion (6 May).
In the forwards market, the naira rates appreciated across the 1-month (+0.2% to NGN1, 641.59/USD), 3-month (+0.2% to NGN1, 707.37/USD), 6-month (+0.8% to NGN1, 799.21/USD) and 1-year (+1.7% to NGN1, 988.66/USD) contracts.