Analysts Predict Broadly Cautious Stock Market Sentiment in June

Kayode Tokede

Capital market analysts have advised investors to trade cautiously in the Nigerian equities market during June 2026, shifting focus to fundamentally strong stocks with attractive valuations.

This guidance comes as the NGX All Share Index gained 3.35 percent in May 2026, the lowest month‑on‑month increase. The index’s year‑to‑date performance as of May 2026 rose 60.90 percent over five months.

Analysts at Cordros Securities Limited wrote in a report, “Looking ahead, we expect market sentiment to remain broadly cautious in the near term, in the absence of a clear catalyst to drive momentum.”

Analysts at Cowry Assets Management Limited added, “The Nigerian equities market is expected to remain cautiously positive, with performance likely driven by stock‑specific factors rather than broad market momentum.”

“Weak market breadth and subdued trading activity suggest continued fragile sentiment, while elevated fixed‑income yields may sustain occasional portfolio shifts away from equities. Nonetheless, selective opportunities may emerge in fundamentally strong counters, particularly in the banking and insurance sectors, as investors remain focused on earnings resilience and dividend prospects.”

Last week, the domestic bourse closed the holiday‑shortened week higher as the NGX All‑Share Index (ASI) advanced 0.27 percent week‑on‑week to close at 250,385.47 points, while market capitalisation increased by N432 billion to N160.509 trillion.

The year‑to‑date return strengthened further to 60.90 percent, reflecting sustained, albeit cautious, investor confidence in the domestic equities space.

However, market breadth remained weak, closing negative with 43 gainers against 45 decliners. This indicates a largely selective and stock‑specific trading pattern, as gains were concentrated in a limited number of counters despite the overall index uptick. International Energy Insurance led the gainers table with a 32.55 percent rise to close at N4.52 per share. Sovereign Trust Insurance followed with a 20.61 percent gain to close at N2.75, while Tantalizers rose 18.40 percent to close at N4.89 per share.

On the decline side, Dangote Sugar Refinery led the decliners table with an 18.22 percent drop to close at N71.15 per share. The Initiates Plc (TIP) followed with a 15.98 percent loss to close at N28.40, while Premier Paints declined 10.00 percent to close at N33.75 per share.

Meanwhile, a total turnover of 2.398 billion shares worth N111.480 billion in 241,313 deals was traded last week by investors on the floor of the Exchange, compared with 3.875 billion shares valued at N161.757 billion in 334,745 deals the previous week.

The Financial Services Industry led the activity chart with 1.656 billion shares valued at N48.229 billion traded in 94,812 deals, contributing 69.07 percent and 43.26 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 265.448 million shares worth N4.530 billion in 19,443 deals, while the ICT Industry recorded a turnover of 101.848 million shares worth N9.163 billion in 24,858 deals.

Trading in the top equities, Fidelity Bank, Access Holdings and The Initiates Plc accounted for 903.681 million shares worth N19.227 billion in 22,238 deals, contributing 37.69 percent and 17.25 percent to the total equity turnover volume and value respectively.