NGX drops 8.4% in June, wiping N13 trillion as profit‑taking hits Dangote Cement

NGX dropped 8.4% in June, marking its worst monthly performance of 2026 after six weeks of gains. The steepest single‑day fall came on June 24, when the All‑Share Index fell 2.35 % and N3.64 trillion of market value vanished. Profit‑taking drove Dangote Cement, BUA Cement and Geregu Power to their daily loss limits, dragging the Industrial Goods sector down 8.30 % in one session.

Broader pressures came from a surge in Nigerian Treasury bill yields, which rose 76 % as heavy government borrowing drained liquidity and made risk‑free assets more attractive than equities. Despite the correction, the NGX remains up about 48 % year‑to‑date in local currency terms and still leads African markets in dollar terms.

Analysts view the drop as a healthy breather that may offer attractive entry points for undervalued banking stocks such as FBNH, Access and FCMB, which face pressure from the Central Bank of Nigeria’s recapitalisation and holding‑company restructuring. Technically, the All‑Share Index sits near support at 227,500‑228,000, with resistance around 232,000‑233,500 and the RSI nearing oversold levels, hinting at a possible relief rally ahead of Q2 earnings.

Investors should consider whether to add discounted bank shares, wait for clearer resistance breaks, or shift to total‑return plays like Seplat and Presco that benefit from dollar‑linked pricing.

SOURCE: https://nairametrics.com/2026/07/01/nigerian-stocks-hit-by-june-storm-bargain-opportunities-emerge/