Nigeria equities rally adds N970bn to market cap as pension funds fuel selective gains, with blue-chip stocks leading the surge on NGX

Nigeria’s equities market extended its bullish run on Wednesday, adding approximately N970 billion to total market capitalisation as strong institutional inflows, largely from pension funds, drove trading activity on the Nigerian Exchange (NGX).

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Market capitalisation rose to N114.377 trillion from N113.496 trillion, while the All-Share Index (ASI) climbed 0.78 per cent to close at 178,184.54 points.

Year-to-date returns now stand at 14.50 per cent, reinforcing the NGX’s reputation as one of the world’s best-performing markets this year.

Market breadth was positive, with 49 gainers against 32 decliners, reflecting widespread buying interest.

Analysts attribute the rally to sustained liquidity from Pension Fund Administrators (PFAs), which oversee assets exceeding N27.45 trillion.

With inflation reducing fixed-income returns, PFAs are increasingly channeling capital into equities to secure real returns.

The Pension Index rose to 8,465.55 points from 8,351.50 points, highlighting the influence of long-term institutional capital on market trends.

The National Pension Commission’s recent adjustment of investment limits for RSA Funds I, II, III, and VI-Active has also spurred equity positioning under the revised regulatory framework.

Blue-Chip Stocks Lead the Rally
Top gainers included Nestle Nigeria Plc, which surged 10 per cent from N2,200 to N2,420, Julius Berger Nigeria Plc up 8.19 per cent to N249.70, and Transcorp Hotels Plc advancing 9.40 per cent to N190.90.

MTN Nigeria and GTCO also recorded gains of 1.09 per cent and 4.95 per cent, respectively.

Analysts note that the rally is evolving from speculative activity to selective, earnings-driven growth, with institutional investors targeting fundamentally strong stocks offering visible earnings and dividend potential.

Earnings and Dividends Drive Sentiment
As companies release full-year results, investors are focusing on dividend declarations and valuation metrics.

CardinalStone Research anticipates positioning ahead of FY’25 final dividends, while Coronation Research emphasises tracking earnings releases and rebalancing portfolios according to market sentiment and valuations.

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With pension funds increasingly acting as active market drivers rather than passive safe-haven investors, their influence continues to shape the trajectory of Nigeria’s capital markets.