Investors Eye Bargain Buys as Mixed Sentiment Caps June Trading on NGX

Trading on the Nigerian Exchange (NGX) closed the month of June on a restrained note, with the All Share Index (ASI) slipping by 11 basis points to 119,978.57, driven by selloffs in heavyweight tickers including WAPCO (-3.05%), GTCO (-1.55%), and ZENITH Bank (-1.81%). Despite the slight dip in index performance, the market witnessed a surge in volume and value traded—rising 224.7% and 246.9% respectively to 2.03 billion units and ₦44.3 billion.

Investor sentiment marginally improved, with market breadth rebounding to 0.02x from -0.07x in the prior session. Out of 128 stocks traded, 32 advanced, 31 declined, and 65 remained unchanged.

Top Performers: CWG, Caverton, and Neimeth Lead the Charge

Tech firm CWG topped the gainers’ chart with a 10% price increase, closing at ₦12.65. Caverton followed with a 9.96% jump to ₦5.74, while Neimeth, FTN Cocoa, and Meyer all posted close to 10% gains. These stocks also appeared on top traded volume lists, suggesting continued retail and institutional interest.

Heavyweights in Play: Oando, AccessCorp, and UACN Drive Market Liquidity

Oando stood out as the most actively traded stock by both volume and value, exchanging 371.07 million units worth ₦19.87 billion across 1,180 deals. AccessCorp also recorded significant turnover with ₦7.23 billion in traded value on 328.38 million shares. UACN and Caverton rounded out the top five in volume, while Zenith Bank, despite a 1.81% price dip, contributed over ₦1.24 billion in value.

Laggards: Learnafrica and Julius Berger See Double-Digit Declines

On the flip side, Learnafrica led the losers, down 10% to ₦4.59. Julius Berger dropped by 9.97% to ₦112.00 amid profit-taking and weak sentiment in industrial names. Other significant decliners included C&I Leasing (-9.9%), Thomas Wyatt (-9.6%), and Daar Communications (-8.2%).

Sectoral Breakdown: Banking and Oil & Gas Indices Dragged Down

Sectoral performance was mixed. The NGX Banking Index fell 1.01% due to declines in GTCO and ZENITH, while the NGX Oil & Gas Index slipped 0.30% on losses in WAPCO and Oando. However, the NGX Industrial Goods Index posted a mild recovery, supported by gains in BUAFOODS (+2.95%) and DANGSUGAR (+1.43%).

Outlook: Bargain Hunting Expected to Support Rebound

Afrinvest analysts expect improved activity in the coming sessions as bargain hunters re-enter the market, particularly ahead of Q3 earnings season. The marginal uptick in investor sentiment, along with enhanced liquidity, sets the stage for a potentially positive start to July.

Corporate Announcements: Strong Dividend Declarations Sustain Optimism

Dividend-paying companies remained a key attraction. ACCESSCORP declared a ₦2.05 final dividend, MANSARD ₦0.15, and SEPLAT ₦8.74. These payouts support income-focused investor interest even amid volatility.

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