Investors Gain N5.49 Trillion in June as Consumer Goods, Insurance, and Banking Stocks Lead Market Rally

Nigeria’s equities market delivered a strong performance in June 2025, gaining approximately N5.49 trillion in market value. The rally was driven by widespread investor interest across key sectors, particularly consumer goods, insurance, and banking, which posted double-digit gains. The NGX Consumer Goods Index led the way with a 10.75% increase, followed closely by the NGX Insurance Index at 10.33% and the NGX Banking Index at 10.04%.

This bullish trend pushed the Nigerian Exchange Limited (NGX) All-Share Index (ASI) from 111,742.01 to 119,978.57 points and boosted market capitalization from N70.462 trillion to N75.951 trillion. The broader market advanced by 7.37% in June, raising its year-to-date return to 16.57%. Analysts attribute the surge to heightened buy-side activities and positive investor sentiment ahead of the half-year earnings season.

According to Coronation Research, the current market momentum is likely to continue in the near term, with investors gravitating towards dividend-yielding stocks. This shift is expected as corporate earnings reports for H1 2025 approach. Similarly, CardinalStone Research noted that they are focusing on earnings momentum, investor sentiment, and plan to rebalance portfolios based on June 30 closing prices.

Looking ahead, United Capital analysts project a modest continuation of the upward trend, citing excess liquidity in the financial system and expectations of strong Q2 results from firms with foreign exchange gains, cost control, and growth potential. However, they also caution that factors like a potential OMO auction, high inflation, and interest rates could slow down investor inflow into equities.

Despite the rally, United Capital advises caution. They expect retail investors to begin profit-taking, which might slow the market’s upward trajectory. They recommend investors selectively focus on fundamentally sound stocks offering good interim dividends, while remaining wary of macroeconomic uncertainties including a weak naira, rising inflation, and global instability.

Source: Business day