Nigerian stocks are facing a cautious September after profit-taking sell-offs in August wiped out much of the market’s earlier gains.
The NGX closed August slightly positive at 0.31%, but the benchmark index lost over 3,500 points in the final week. Analysts warn that sentiment remains fragile.
Attention is now on tier 1 banks including First Bank, UBA, GTCO, Access and Zenith. Their upcoming earnings and interim dividends could provide the support needed to steady the market.
The NGX Banking Index, which surged 25.8% in July, has since retreated and is testing support near 1,500. Only First HoldCo has released Q2 results so far, leaving investors waiting for clarity from the rest of the sector.
Analysts say strong bank earnings may be the catalyst to lift confidence after August’s turbulence.