Nigeria’s equity market concluded June trading with marginal declines despite strong half-year performance, as banking sector weakness offset gains in consumer goods and insurance segments.
The Nigerian Exchange All Share Index declined 0.01% to close at 119,978.57 points, driven primarily by profit-taking in Guaranty Trust Holding Company and Zenith Bank shares. Market capitalization decreased by N11 billion to N75.951 trillion, though year-to-date gains remain substantial at 16.6%.
First-half performance demonstrates remarkable investor confidence, with market capitalization gaining N13.2 trillion during the period. The growth reflects renewed optimism in Nigerian equities following economic policy adjustments and improved corporate earnings prospects.
Sectoral performance revealed mixed investor sentiment, with banking stocks declining 1.1% while consumer goods advanced 0.8%. The divergence suggests strategic repositioning ahead of half-year earnings announcements expected to influence second-half trading patterns.
“With the ASI reaching a new all-time high last week and easing in the last two trading sessions, we expect short-term profit-taking in recent gainers this week,” analysts at Coronation Merchant Bank projected. Market positioning shifts toward dividend-yielding stocks anticipate earnings season developments.
Trading volume surged 224.69% to 2.032 billion units valued at N44.337 billion, indicating heightened investor activity despite price declines. Royal Exchange led activity with 502.264 million shares traded, followed by Oando with 371.073 million shares.
Foreign portfolio investment flows remain positive despite global market uncertainties, with Nigerian assets offering attractive yields relative to international alternatives. Currency stability improvements support international investor confidence in local market exposure.
Market breadth remained nearly balanced with 32 advancing stocks against 31 decliners, suggesting underlying strength despite index weakness. This performance pattern typically indicates consolidation phases preceding renewed upward momentum.
Analysts anticipate increased focus on companies with strong fundamentals and sustainable dividend policies as earnings season approaches. Healthcare, consumer goods, and technology sectors receive particular attention for growth potential.
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