RFA Breakfast Paper - June 30, 2026
South Africa's Private Sector Credit Growth Moderates in May
Private sector credit in South Africa increased 8.57% year-on-year in May 2026, easing from 9.20% in April but remaining at a relatively robust pace. The moderation suggests that while credit demand has softened slightly, lending activity continues to support economic activity despite tighter monetary conditions following the South African Reserve Bank's recent interest rate hike. Sustained credit growth indicates that businesses and households continue to access financing, although higher borrowing costs and a weaker economic outlook may gradually weigh on loan demand in the coming months. Historically, private sector credit growth in South Africa has averaged 12.71% since 1966, reaching a record high of 35.88% in July 1981 and a record low of -2.35% in May 1966.
U.S. Equities Close Higher as Investors End the Quarter on a Strong Note
U.S. equities closed higher on Tuesday, with the Nasdaq leading the gains as technology stocks rebounded from last week's sharp sell-off. The strong finish capped an impressive quarter for the broader market, with the S&P 500 advancing roughly 15%, its best quarterly performance since 2020. Technology remained the standout performer during the quarter, surging about 31%, while industrials also posted solid gains of nearly 15%, highlighting continued investor confidence in growth-oriented sectors despite recent volatility. More recently, however, market leadership has begun to broaden as investors rotated into healthcare, industrials, and financials while trimming exposure to technology and AI-related stocks. The shift suggests investors are positioning for a more balanced market, supported by easing oil prices, resilient economic growth, and a healthy labor market. If these trends persist, the broader market rally could continue beyond technology, benefiting both large-cap and mid-cap U.S. equities.
NGX Closes June on a Positive Note Despite Monthly Losses
The Nigerian equity market closed the month on a positive note as renewed buying interest in recently moderated mid-cap and blue-chip stocks lifted key market indicators. The NGX All-Share Index (ASI) gained 1,017.26 basis points, or 0.45%, to close at 229,419.18, while market capitalization rose by ₦652.78 billion to ₦147.22 trillion. Although the market rebounded in the final trading session, June ended on a negative note overall, as post-dividend profit-taking, socio-economic challenges, and pre-election uncertainty weighed on investor sentiment throughout the month. Despite the monthly decline, the market maintained a strong year-to-date performance as the second quarter came to a close. The NGX-ASI remained up 47.43% year-to-date, with investors' wealth increasing by approximately ₦47.84 trillion, supported by the early-year rally, strong corporate earnings, dividend declarations, and improved market participation. Meanwhile, trading activity weakened, with volume declining by 2.99% to 966.66 million shares and transaction value falling 8.56% to ₦39.99 billion across 49,579 deals. Despite the challenging month, the market continues to demonstrate underlying strength, with investors expected to focus on fundamentally attractive stocks as they position for the second half of the year.
