The NASD Over-the-Counter (OTC) Securities Exchange experienced a robust week of trading, culminating in a N1.90 trillion market capitalization by the close of business on Friday, May 30, 2025. This represents a 1.86% increase from the previous week’s N1.87 trillion, reflecting a positive trend and renewed investor confidence in the Nigerian economy. The NASD All-Share Index mirrored this upward trajectory, rising from 3,188.76 points to 3,248.00 points, further solidifying the market’s bullish performance. This surge in market activity suggests a growing interest in the OTC market, possibly driven by investors seeking alternative investment opportunities outside the traditional stock exchange.
The driving force behind this week’s impressive performance was the oil and gas sector, which accounted for a dominant 81.37% of total trading activity. Investors traded a substantial 506.19 million shares in this sector, generating a value of N4.18 billion across 21 deals. This significant concentration in the oil and gas sector underscores its continued influence on the Nigerian economy and its attractiveness to investors, possibly buoyed by global oil price dynamics or company-specific developments. The consumer goods sector followed, albeit with significantly less activity, recording N638.94 million in transactions from 15.77 million shares traded across 48 deals. This suggests a more diversified investor interest within the consumer goods sector compared to the concentrated activity observed in oil and gas.
Overall, the NASD OTC market witnessed a surge in both trading volume and value during the week. A total of 551.01 million shares changed hands, generating a total transaction value of N5.14 billion spread across 133 deals. This represents a significant increase compared to the preceding week, indicating a heightened level of investor participation and a strengthening of the OTC market. The increased trading volume and value further support the notion of growing investor confidence and a positive outlook for the listed companies. Among the most actively traded securities during this period were Air Liquide Plc and FrieslandCampina WAMCO Nigeria, indicating strong investor interest in these particular companies.
Market analysts attribute this positive market performance to a combination of factors, primarily improved investor confidence stemming from perceived favorable policy directions by the federal government and a relatively stable economic environment. The Central Bank of Nigeria’s (CBN) decision to maintain the Monetary Policy Rate (MPR) at 27.5% also contributed to the positive sentiment. This decision, signaling the CBN’s commitment to managing inflation and maintaining stability, likely reassured investors and further fueled the bullish trend. Maintaining the MPR fosters predictability in the market, which is generally viewed as positive by investors.
The CBN’s rationale for holding the MPR steady was rooted in observed moderating inflation, particularly in the food sector, and a relative stability in the foreign exchange market. These positive economic indicators provided further justification for investor optimism and likely contributed to the increased trading activity. A stable foreign exchange market is crucial for businesses operating in Nigeria and attracts foreign investment, positively impacting market sentiment. Controlling food inflation, a significant component of the consumer price index, directly impacts the cost of living and contributes to overall economic stability.
In conclusion, the NASD OTC market experienced a significant boost during the week ending May 30, 2025, driven by heightened investor confidence and favorable economic indicators. The oil and gas sector led the charge, accounting for the lion’s share of trading activity, followed by the consumer goods sector. The CBN’s decision to hold the MPR at 27.5%, citing moderating inflation and relative stability in the foreign exchange market, further bolstered investor sentiment. This positive performance underscores the increasing relevance of the NASD OTC market within the Nigerian financial landscape and suggests a potential for continued growth in the coming weeks, provided the positive economic trajectory is maintained. The increased trading volume and value, along with the positive movement in the NASD All-Share Index, paint a picture of a vibrant and growing market.
