The value of Nigeria’s equities market rose by about N5.489trillion in June as all key sectors on the nation’s bourse saw remarkable buy-side activities.
A look at the performance of key sectoral indices shows that the NGX Consumer Goods Index rallied the most by 10.75 percent, NGX Insurance Index (+10.33 percent), NGX Banking Index (+10.04 percent), NGX Industrial Index (+5.60 percent), and NGX Oil & Gas Index (+4.74percent).
“In the near term, we anticipate a shift in market positioning toward historically high dividend-yielding stocks ahead of the half-year earnings season, while macroeconomic developments will continue to shape overall sentiment,” Coronation Research analysts said in their June 30 note.
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The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased from month-open levels of 111,742.01 points and N70.462 trillion, respectively, to 119,978.57 points and N75.951 trillion.
CardinalStone Research analysts in their June 30 note also said, “As we approach the half-year (H1) 2025 earnings season, our focus remains firmly on investor sentiment, corporate announcements, and underlying earnings momentum”.
The analysts at CardinalStone also said that they will be rebalancing their portfolio using closing prices as of June 30, 2025, “in line with our quarterly strategy
update”.
In the review month, the market rallied by 7.37 percent, pushing the market’s return year-to-date (YtD) to +16.57 percent.
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“Looking forward, the equities market might continue in its upward trend, leading to a slight gain in the ASI. This is hinged on the market benefiting from the excess liquidity in the financial system. Similarly, investors might start positioning for the second-quarter (Q2) earnings season, favouring corporates with FX gains, cost control, clear growth trajectory, and those with potential for quality interim dividend payment,” according to Lagos-based United Capital research analysts.
They noted that on the flip side, a potential OMO auction might reduce the inflow of funds into the equities market, “as elevated yields keep investors anchored to the fixed income market instruments”. “Similarly, positive sentiments will be moderated by elevated inflation, heightened interest rate, weak Naira and general uncertainty in the global and domestic macroeconomic space,” they said.
The analysts at United Capital expect retail investors to continue to take profit from the previous week’s gains, “tactically slowing the upward movement of the equities market. We advise investors to cherry pick fundamentally sound stocks with potential for interim dividend payment”.
