Nigeria’s equities market gained approximately ₦5.49 trillion in June as strong buy-side activity across major sectors lifted investor sentiment ahead of the upcoming half-year earnings season.
Data from the Nigerian Exchange Limited (NGX) shows the All-Share Index (ASI) rose by 7.37 percent from 111,742.01 points at the start of June to close at 119,978.57 points.
The market capitalisation increased from ₦70.46 trillion to ₦75.95 trillion.
A sectoral breakdown shows the NGX Consumer Goods Index led the performance chart with a monthly gain of 10.75 percent, followed by the NGX Insurance Index (+10.33 percent), NGX Banking Index (+10.04 percent), NGX Industrial Index (+5.60 percent) and NGX Oil & Gas Index (+4.74 percent).
Analysts at Coronation Research attributed the broad rally to positioning for high dividend-yielding stocks and favourable corporate actions expected during the half-year earnings season.
“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 stated in a note released on June 30.
The year-to-date return for the local bourse now stands at +16.57 percent, supported by liquidity in the financial system and sustained corporate earnings momentum.
CardinalStone Research analysts echoed the cautious optimism, noting they would rebalance their portfolios in line with their quarterly strategy update, keeping a close watch on corporate announcements and investor sentiment in the run-up to half-year results.
United Capital analysts noted that while the equities market may extend its positive trajectory, risks remain from potential liquidity-tightening measures such as an Open Market Operations (OMO) auction, elevated yields in the fixed income space, and persistent macroeconomic headwinds including high inflation, interest rate pressures, and exchange rate volatility.
“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,” United Capital said in its outlook.
They added that retail investors may take profit from the recent rally, potentially slowing further gains, but advised investors to focus on stocks with sound fundamentals, clear earnings visibility and attractive interim dividend prospects.
Despite challenges, analysts remain broadly positive that robust earnings and dividend declarations will support equities in the near term as market participants adjust positions for the second half of the year.
