Nigerian Equities Advance as Oando, Transcorp Lead; Market Volume Surges 21.6%, Naira Inches Up in Official Window

The Nigerian equities market posted another positive session on Monday, May 13, 2025, as investors rotated into energy and industrial plays, lifting the NGX All-Share Index (ASI) by 0.27% to 108,763.34 points. The rally extended the year-to-date return to 5.67%, with market capitalisation edging up to ₦68.36 trillion.

Trading activity was vibrant, as volume soared 21.6% to 498.48 million shares, though the number of deals dropped 9.28% to 14,916—reflecting increased block trades by institutional investors. Transaction value rose modestly by 1.75% to ₦10.78 billion.

Oando Plc led the top gainers with a 10% advance to ₦49.50, amid sustained bullishness in the oil and gas sector, supported by renewed optimism in crude prices and reforms. Transcorp Plc and Beta Glass also saw significant buying interest, gaining 9.99% and 9.96% respectively. Conversely, HMC Allied Plc was the session’s worst performer, falling 9.85% to ₦4.21.

Tantalizer Plc was the most active stock by volume, exchanging 57.8 million shares, while GTCO, Fidelity Bank, and Access Holdings dominated total transaction value.

Macro Indicators and Cross-Market Dynamics

The bullish momentum in equities echoed developments in the fixed-income and FX markets. According to Cowry Research’s latest market insight, sentiment in Nigeria’s Eurobond market turned bullish, driving down yields on key maturities by as much as 25 basis points, amid improving investor appetite.

In the secondary market for Federal Government bonds, average yields dipped modestly by 1 basis point to 19.03%, reflecting tepid interest amid cautious liquidity conditions.

The Nigerian Interbank Offered Rate (NIBOR) advanced across key tenors, with the overnight rate ticking up by 0.08% to 26.71%, signaling tightening interbank liquidity despite improved transaction volumes in equities.

Meanwhile, the Naira appreciated slightly by 0.06% in the official window to ₦1,606.64 per dollar, although it continued to trade at a much weaker ₦1,590 in the parallel market, indicating persistent divergence between official and unofficial exchange rates.

Sector Performance

Sectoral performance remained mixed. While the Banking, Consumer Goods, and Industrial Goods indices posted gains, the Insurance, Oil & Gas, and Commodities sectors declined marginally, reflecting selective rotation by investors.

Market watchers caution that despite the day’s gains, sustainability hinges on broader macroeconomic stability. With inflation still elevated at 24.23% (as of March 2025) and the policy rate at 27.5%, liquidity conditions are expected to remain tight, posing potential headwinds for equities in the near term.

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