May 6, 2026/CSL Report

• The equities market recorded a strong performance in April, rising by 20.4% month-on-month—its sharpest single-month gain so far this year. Although the rally was supported by broad-based participation, it was primarily driven by renewed investor interest in the oil and gas sector, which surged by 39.0%. This outperformance reflected improved earnings expectations, underpinned by sustained strength in global energy prices.
• Market breadth improved, rising to 0.77x from 0.47x in March, indicating stronger underlying sentiment. This was reflected in a broader participation level, with 50 advancers compared to 65 decliners, an improvement from 37 advancers and 78 decliners in the previous month. As a result, the NGX All-Share Index recorded a notable gain during the period, reinforcing the market’s bullish trajectory.
• Trading activity also strengthened during the period. Average daily volume rose by 5.5% month-on-month to approximately 846.0 million units, while average daily value increased by 6.0% to ₦45.0 billion. This uptick reflects increased investor participation, particularly in mid- to large-cap stocks.
• Overall, April trading was characterized by broad-based buying interest across most sectors, with four of the five major indices closing in positive territory, underscoring the strength and depth of the market rally.

May 2026 market prospects

• The equities market is expected to maintain its positive momentum into May, building on the strong performance recorded in April. While some profit-taking is likely—particularly in stocks with significant year-to-date gains—this is expected to be largely offset by bargain-hunting and selective accumulation in fundamentally strong names.
• The Q1 2026 earnings season will remain a key driver of market direction, shaping investor sentiment and portfolio positioning. Beyond headline results, investors are likely to focus on margin trends, earnings quality, and forward guidance.
• Overall, the market is expected to remain relatively buoyant in May, supported by earnings-driven catalysts and continued demand for real returns. Although fixed-income yields remain attractive, a gradual softening at the short end of the curve could help sustain interest in equities. While intermittent volatility and profit-taking may persist, the broader outlook remains constructive for medium- to long-term investors.
• We also expect anticipation of re-entry into global indices such as FTSE Russell and MSCI to continue to have a positive impact on sentiment in the Nigerian equities market, as investors anticipate renewed foreign capital inflows from both passive and active fund.

April 2026 Top 10 Stock Picks

Kindly click on the below link to download the May 2026 monthly stock picks report.

​CSL Nigeria Monthly Stock Picks – May 2026.pdf