Researchers and investment analysts at Bancorp Securities Limited, a leading stockbroking and investment consultancy firm in Nigeria, have predicted that trading on the Nigerian Exchange would remain positive this week partly due to recent earnings by investors on their investments on listed stocks on the exchange.
The experts, in the firm’s ‘Weekly Stock Recommendation: May 4th to May 8th 2026’ Note circulated to our correspondent on Monday, recalled that the local bourse extended its bullish momentum for the fifth consecutive week, supported by sustained investor positioning around Q1 2026 earnings releases.
As a result of the impressive earnings, the NGX All-Share Index advanced by 7.33% week-on-week to close at 242,227.81 points, pushing year-to-date returns higher to 55.69% while investor wealth significantly increased, with approximately N2.68 trillion added to the market capitalization during the week.
The investment experts attributed the uptrend largely to strong gains in large-cap names, particularly within the Industrial Goods and Oil and Gas segments, namely BUACEMENT (+24.78%), ARADEL (+20.48%), PRESCO (+16.16%) among others.
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On the projected performance of the equities market this week, the experts forecasted: “We expect the local bourse to remain positive but increasingly selective, supported by the recent earnings releases and sustained liquidity. Activity will likely remain concentrated in Industrial Goods, Oil & Gas, while bargain hunting may occur in low cap stocks.”
Meanwhile, they noted that Nigeria’s macroeconomic backdrop softened last week as private sector activity slipped into contraction for the first time in 16 months, with the PMI falling below 50
Specifically, data from the Central Bank of Nigeria (CBN) showed that the composite Purchasing Managers’ Index (PMI) declined to 49.40 points in April 2026, down from 53.20 in March, falling below the 50-point threshold and signalling a broad-based slowdown in economic activity.
The apex bank linked the PMI contraction to weakening performance across the services and industrial sectors.
The Services PMI declined to 48.80 points (vs. 52.00 previously), reflecting reduced activity across key segments including trade, real estate, and transportation, alongside declines in new orders and employment.
Similarly, the Industry PMI dropped to 49.50 points from 54.00, with weaker readings across production, new orders, and input conditions pointing to a loss of momentum in industrial output. In contrast, the agricultural sector remained marginally in expansion, with PMI easing to 50.20 points from 52.80, indicating slower growth in farming activity.
However, the moderation in new orders suggests that demand conditions are weakening across the broader economy.
Overall, the Bancorp Securities’ analysts maintained that the data pointed to emerging demand-side pressures, as elevated cost conditions begin to constrain output across key sectors of the nation’s economy.
