Business
The Nigerian Exchange (NGX) opened july on a bearish note
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
The Nigerian Exchange (NGX) began trading in July on a weak footing, with investors losing approximately ₦2.39 trillion in a single trading session as widespread profit-taking triggered a sharp decline across major market sectors.
The sell-off dragged the benchmark All-Share Index (ASI) down by about 1.63 per cent, marking one of the steepest single-day declines in recent weeks and bringing an end to the bullish momentum that had characterized the market in the closing weeks of June.
The broad-based decline affected virtually all major sectors of the market, including banking, industrial goods, oil and gas, and consumer goods, as investors moved to lock in gains following the impressive rally recorded during the first half of the year.
The sharp decline reduced the overall market capitalization of listed equities by approximately ₦2.39 trillion, reflecting the scale of the sell-off and highlighting the sensitivity of investors to prevailing market conditions.
Market analysts attributed the decline primarily to profit-taking by institutional and retail investors who took advantage of the significant appreciation recorded by many blue-chip stocks in recent months.
Several fundamentally strong companies had delivered substantial capital gains during the first half of the year, prompting investors to rebalance their portfolios and secure profits ahead of the release of second-quarter corporate earnings.
According to market operators, such corrections are a natural feature of equity markets after sustained rallies, allowing stock prices to adjust before establishing new support levels.
They noted that while the decline appeared significant in value terms, it does not necessarily signal a reversal of the market’s long-term positive outlook.
The banking sector accounted for a significant share of the losses as investors sold down some of the market’s most actively traded financial stocks.
Leading tier-one banks, which had been among the strongest performers during the previous market rally, witnessed renewed selling pressure as investors opted to crystallize gains accumulated over recent months.
Analysts said the sector’s earlier rally had been supported by expectations of stronger earnings, attractive dividend yields and ongoing banking sector recapitalisation efforts. However, the recent decline reflected investors’ decision to take profits rather than concerns about the underlying fundamentals of the banking industry.
Industrial goods stocks also came under pressure, with major cement manufacturers recording notable price declines that contributed significantly to the overall market downturn.
Consumer goods companies were equally affected as investors trimmed their holdings in several blue-chip stocks despite continued optimism about long-term consumer demand and improving corporate earnings prospects.
Similarly, oil and gas equities recorded losses amid cautious investor sentiment, reflecting broader market weakness rather than sector-specific concerns.
The widespread decline across virtually all sectors underscored the broad nature of the market correction.
Despite the sharp fall in prices, trading activity remained relatively healthy, indicating continued investor participation and liquidity in the market.
Market participants observed that bargain hunters also emerged during the session, taking positions in fundamentally sound companies whose share prices had retreated following the sell-off.
Analysts believe the presence of value investors could help moderate further declines should attractive entry opportunities continue to emerge.
Beyond profit-taking, investors also remained cautious amid evolving macroeconomic conditions, including interest rate expectations, inflation trends and exchange rate developments.
The relatively high yields available in the fixed-income market have continued to compete with equities for investment flows, prompting some investors to diversify their portfolios between bonds, treasury instruments and stocks.
Market participants are also closely monitoring corporate earnings releases, monetary policy developments and government economic reforms, all of which are expected to influence market direction in the coming weeks.
Despite the bearish opening to July, investment analysts maintain that the Nigerian equities market retains strong medium- to long-term growth prospects.
They argue that the recent decline represents a healthy correction following months of sustained gains and is unlikely to undermine the positive fundamentals supporting the market.
Strong corporate earnings, improving dividend expectations, ongoing banking recapitalisation, renewed foreign investor interest and continued economic reforms are expected to provide support for equities over the medium term.
Analysts added that investors with long-term investment horizons may view the current price weakness as an opportunity to accumulate fundamentally strong stocks at more attractive valuations.
Market observers expect trading in the coming weeks to remain influenced by profit-taking, portfolio rebalancing and reactions to second-quarter earnings announcements.
While short-term volatility may persist, they believe the Nigerian Exchange remains well positioned to attract investors seeking long-term capital appreciation and dividend income, particularly in fundamentally strong companies with resilient earnings prospects.
The market’s performance over the remainder of the month will likely depend on the pace of corporate earnings releases, macroeconomic developments and investor confidence in the country’s ongoing economic reforms.
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
KACRAN urges northern governors to adopt Buni’s economic blueprint, seeks FG’s soft loans
Swiftthinkers Essay Competition: 40 Lagos pupils qualify for next stage
KACRAN raises alarm over livestock exodus, warns of threat to food security
-
Business4 months agoNGX surges as investors gain ₦3.19tn
-
News4 months agoAPC’s budget for security jumps from #969b to ₦5.41tr
-
News7 months agoSERAP to Akpabio: Disclose officials involved in misappropriation of ₦200t from NNPC
-
News6 months agoDisquiet over whereabouts of ₦2.9 billion in key federal agencies
-
Business9 years agoThe 9 worst mistakes you can ever make at work
-
News9 years ago
These ’90s fashion trends are making a comeback in 2017
-
Business4 months agoFCMB profit hits ₦202bn on first quarter performance
-
Entertainment9 years ago
The final 6 ‘Game of Thrones’ episodes might feel like a full season