Nigerian stocks ended the month of May with a surprise gain after the NGX All-Share Index (ASI) staged consecutive gains this week, closing at 99,300.38 points.
The NGX All-Share Index and Market Capitalization appreciated by 1.73% to close the week ending May 31 at 99,300.38 points and N56.172 trillion, respectively.
Similarly, all other indices finished higher with the exception of NGX Industrial Goods and NGX Growth, which depreciated by 0.13% and 0.29%, respectively.
while the NGX ASeM and NGX Sovereign Bond indices closed flat.
Essentially, the NGX ended the month with a 1% gain, improving from the 6% loss recorded at the end of April. Despite a 5.03% decline this quarter, the ASI remains strong with a 32.8% year-to-date gain.
During the month, banking stocks gained 2.97%, as the NGX Banking Index closed at 797.37 points, as against 774.35 at the end of April.
In May, many banks released their first quarter results displaying impressive financial performances, thus enticing investors.
For example, GTCO, which posted the best quarterly profit in banking history, posted a monthly gain of 22.3% during the month, while Fidelity Bank gained 13.33%.
The NGX Consumer Goods Index posted a marginal 1.19% gain during the month driven by gains recorded by stocks such as Dangote Sugar, which gained 20.82% in the month, and International Breweries, which gained 27.40%.
The Oil and Gas Index also gained 2.06% during the month, occasioned by the 3.6% gain posted by Seplat Energy during the month.
May is traditionally a selling month for stocks as it often coincides with dividend payments and mark-downs. Investors also prefer to take profits in May, leading to negative returns.
Despite the saying “sell in May and go away,” data from Nairametrics research reveals that in the last 10 years, the All-Share Index has only posted losses three times. May 2024 marks the third consecutive year of gains for the ASI.
In May 2024, the NGX recorded a market turnover volume of 9.955 billion shares traded across 197,056 deals, with a value of N198 billion.
Market performance for the week ending May 31
Despite closing in the negative for most weeks of the month, most of the major indexes closed the month positive, largely driven by this week’s performance. The NGX Banking Index saw an impressive weekly gain of 8.72%, highlighting strong performance in the banking sector. The NGX Pension Index also posted significant gains, up by 5.27% for the week.
Notable performers for the week included the NGX CG Index, which rose by 7.53%, and the NGX AFR Bank Value Index, which increased by 7.71%. These gains underscore a robust recovery across various sectors of the Nigerian stock market as May concluded on a positive note.
During the week, investors traded 2.189 billion shares worth N31.303 billion in 39,362 deals, marking an uptick from last week, when 1.986 billion shares valued at N40.715 billion were traded in 38,487 deals.
The Financial Services Industry led the activity chart during the week, trading 1.914 billion shares worth N23.922 billion in 21,717 deals, making up 87.41% of the total equity turnover volume and 76.42% of the value.
The Oil and Gas Industry followed with 55.349 million shares worth N3.093 billion in 2,109 deals.
The Agriculture Industry took third place, with 45.085 million shares valued at N377.619 million in 1,615 deals.
Some of the best-performing stocks during the week include banking stocks such as Fidelity Bank, FCMB, UBA, and FBNH which gained 22.89%, 17.65%, 15.63%, and 14.67% respectively. Members of Dangote Group, Dangote Sugar Refinery and NASCON gained 20.51% and 20.15% respectively during the week.
Other top gainers include Consolidated Hallmark Holdings which gained 14.29%, Seplat Energy and Oando with 13.67% and 11.85% respectively.