The Nigerian equities market opened the first trading week of June on a positive note, advancing by 0.26 percent or N179 billion in market value as investors strategically repositioned ahead of this week’s Nigerian Treasury Bills (NT-Bills) Primary Market Auction (PMA).
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) increased from 111,742.01 points recorded on the last trading day in May to 112,026.24 points at the close of trading on Monday while the market capitalisation rose from N70.462 trillion to N70.641 trillion.
Market analysts anticipate mixed sentiment throughout the week but with a mild bullish inclination due to renewed interest in undervalued equities and dividend expectations.
According to analysts at Futureview Research, “We anticipate a mixed performance in the equities market this week, with a modest bullish bias supported by anticipated buying activity.”
The analysts noted that investors’ appetite will likely be shaped by liquidity levels, the Treasury Bills auction, and expectations for dividend markdowns.
The ongoing repositioning is also driven by the broader macroeconomic environment, including excess liquidity spillover and potential earnings momentum.
United Capital Research analysts added that investors may begin early positioning for the second quarter earnings season, particularly favouring corporates with foreign exchange gains, strong cost control and interim dividend potential.
“Looking forward, the equities market might be mildly positive leading to a slight gain in the ASI,” the firm noted.
However, analysts cautioned that the upcoming NT-Bills PMA and the possibility of an Open Market Operations (OMO) auction by the Central Bank of Nigeria could redirect liquidity toward the fixed-income market.
Yields on NT-Bills and OMO instruments remain elevated at around 24 percent, making them attractive to conservative investors and potentially slowing equity inflows.
Vetiva Research, in its pre-market commentary, also projected a cautious start to the month.
“As June opens, the market is poised for a mixed start to this week. Investors may continue to rebalance portfolios, and potential dividend flows could provide near-term support,” the firm stated. It added that in the absence of a clear catalyst, sideways trading may persist amid light volumes.
On the trading floor, investor activity was relatively stable. A total of 517.95 million shares valued at N10.07 billion were exchanged in 17,019 deals. Actively traded stocks included Fidelity Bank, Royal Exchange, Access Holdings, Cutix and United Capital.
Gainers outpaced losers with Multiverse Mining and Exploration Plc leading the chart.
The stock rose from N7.60 to N8.35, gaining 75 kobo or 9.87 percent. Livestock Feeds followed with a 90 kobo or 9.57 percent increase to close at N10.30. Lasaco Assurance appreciated by 8.11 percent to N2.80 while Neimeth International Pharmaceuticals advanced by 8.06 percent to N3.35.
CardinalStone Research pointed out that dividend-focused trading activity is expected to continue guiding investor behaviour.
“This week, our focus remains on dividend-driven market movements and investors’ sentiment, especially around markdowns, announcements, and earnings momentum,” it said.
Despite the moderate gains, downside risks persist. United Capital cautioned that inflationary pressures, weak Naira performance, elevated interest rates and global uncertainties remain significant dampeners.
The firm advised investors to cherry-pick fundamentally sound stocks, particularly those with potential for consistent interim dividend payments.
As the week progresses, all eyes remain on the NT-Bills auction outcome and liquidity dynamics across money and capital markets.
Market participants are expected to remain tactical as they navigate a complex environment shaped by monetary policy signals, macroeconomic constraints, and earnings season expectations.
