Why Nigerian equities shed N13.3tn in June – Analyst
Lagos, July 2026 (TBL Africa ) Wyoming Capital and Partners has attributed the Nigerian stock market’s N13.291 trillion loss in June to investor caution over the T+1 settlement cycle, profit-taking and fixed-income investments.
The Chief Executive Officer of the company, Mr Tajudeen Olayinka, said this in an interview on Friday in Lagos.
The Nigerian stock market reversed the gains recorded in May as sustained profit-taking across major sectors dragged market performance lower.
Data from the Nigerian Exchange Ltd. (NGX) showed that market capitalisation declined by N13.291 trillion to N147.217 trillion at the end of June from N160.508 trillion at the beginning of the month.
Similarly, the All-Share Index (ASI) fell by 18,141.48 points, or 8.4 per cent, to close at 229,419.18 from 247,560.66 recorded at the start of the month.
Olayinka said that although the T+1 settlement regime enjoyed broad market support, some institutional investors had slowed their participation while adjusting to the new settlement requirements.
He explained that the requirement for investors, particularly those trading through custodians, to pre-fund transactions had created temporary operational challenges.
“Some institutional investors are holding back, not because they oppose T+1, but because they need time to adjust to the new settlement process.
“They are concerned about pre-funding transactions, especially where orders are not executed and funds have to be returned,” he said.
According to him, reduced participation by institutional investors, who account for a significant share of market liquidity, contributed to the prolonged decline witnessed throughout June.
He noted that the market’s performance fell short of investors’ expectations ahead of the release of half-year financial results by many listed companies.
“The market performance in June does not reflect what investors expect from listed companies. It has simply underperformed expectations,” Olayinka said.
He added that while some investors switched to fixed-income securities to take advantage of higher yields, the migration was not widespread.
According to him, equities remain the preferred long-term asset class because listed companies are better positioned to adjust to inflationary pressures and sustain earnings growth.
Olayinka expressed optimism that the equities market would rebound in July as investors become accustomed to the T+1 settlement regime and companies begin releasing their half-year financial results.
“I believe July will be better. Once these operational issues are addressed and investors become comfortable with the T+1 process, confidence should improve and market activity is expected to rebound,” he said.
Meanwhile, trading activity showed that investors exchanged 16.292 billion shares valued at N855.99 billion in 1,227,430 deals in June, compared with 21.120 billion shares worth N971.628 billion traded in 1,453,439 transactions in May.
Analysis of the month’s trading indicated that the market closed lower in 14 of the 21 trading sessions, with only seven sessions ending on a positive note, largely due to widespread profit-taking in blue-chip stocks.
Among the major losers, Aradel Holdings shed N516.30 to close at N1,417.50 from N1,933.80, while Dangote Cement lost N217 to close at N963 from N1,180.
MTN Nigeria declined to N720 from N820, while Okomu Oil Palm fell to N1,418 from N1,750.
Other major decliners included First HoldCo, United Bank for Africa, Zenith Bank and Guinness Nigeria.
In spite of the broad market weakness, Airtel Africa emerged as one of the month’s strongest performers, with its share price rising by N1,138.90 to N4,794.60 from N3,655.70.
Similarly, Conoil Plc appreciated to N210 from N194 during the period under review.
Olayinka attributed Airtel Africa’s strong performance to sustained institutional demand.
“Airtel is a large-cap stock. To move its price significantly requires substantial capital. Whenever such movements are observed, it suggests that investors with strong confidence in the company’s fundamentals are accumulating the stock,” he said.
The June performance marked a sharp reversal from May, when the equities market added about N4.5 trillion to investors’ wealth.
