NGX Rebounds as Airtel Africa Drives N652.8bn Market Gain Amid Persistent Selling Pressure

Nigeria’s stock market ended June on a positive note as renewed investor interest in Airtel Africa and other blue-chip stocks helped the Nigerian Exchange (NGX) recover from recent losses. The NGX All-Share Index (ASI) rose by 0.45 percent to close at 229,419.18 points on Tuesday, while market capitalisation increased by approximately N652.77 billion to N147.22 trillion. The recovery came just a day after investors witnessed a massive N2.35 trillion market decline, offering some relief as the market seeks stability after weeks of correction.

Airtel Africa emerged as the star performer of the session, gaining the maximum daily limit of 10 percent to close at N4,794.60. The telecom giant’s rally provided significant support to the market, helping offset losses recorded across several banking, insurance, and consumer goods stocks. Other notable gainers included Prestige Assurance, CVFC, Cutix, and Regal Insurance, while FCMB, Dangote Sugar, Wema Bank, and Chams also attracted fresh investor interest after recent periods of weakness.

Despite the market’s overall gain, investor sentiment remained cautious as profit-taking continued across many counters. Market breadth stayed negative, with 32 stocks closing lower compared to 19 gainers. Among the worst-performing stocks were Custodian Investment, R.T. Briscoe, PZ Cussons Nigeria, UPDC, and Honeywell Flour Mills, all of which recorded significant declines. The trend suggests that many investors are still cashing in on profits following the market’s impressive rally earlier in the year.

Sector performance painted a mixed picture, with the Banking Index leading losses after falling 1.62 percent. The Insurance Index declined by 0.38 percent, while Consumer Goods slipped marginally. On the positive side, the Oil and Gas and Industrial Goods indices posted slight gains, reflecting selective buying activity. Trading activity also weakened, as total transaction volume dropped to 966.66 million shares and the value of trades declined to N39.99 billion, indicating a more cautious approach from investors.

Analysts say the latest rebound highlights a shift toward fundamentally strong stocks rather than broad-based bargain hunting. Linkage Assurance led trading volume, while Aradel Holdings dominated transaction value with deals worth N11.59 billion. Although the market managed to close higher and improve its year-to-date return to 47.43 percent, experts warn that volatility could persist in the coming weeks. With profit-taking and bargain hunting occurring simultaneously, investors are expected to remain selective as they assess opportunities in Nigeria’s evolving equities market.

source: nairametrics