Pension Reforms Drive NGX Up 6.16%, Add N6.79trn

Nigeria’s equities market surged last week after a major regulatory shift by the National Pension Commission (PenCom) allowed pension funds to increase their equity holdings.

The NGX All-Share Index rose 6.16% to 182,313.08 points, adding ₦6.79 trillion to market capitalisation, which now stands at ₦117.03 trillion.

PenCom’s decision to raise equity investment limits for Pension Fund Administrators triggered aggressive buying of medium- and large-cap stocks, lifting liquidity to record levels.

Turnover reached 4.65 billion shares worth ₦193.33 billion, compared with 3.86 billion shares valued at ₦128.58 billion the previous week.

The rally was broad-based. Oil and Gas gained 11.40%, led by Seplat (+13.98%) and Aradel (+10.78%). Industrial goods rose 7.09%, driven by Lafarge Africa (+12.87%) and Dangote Cement (+6.81%).

Banking stocks advanced 5.84%, while Consumer Goods climbed 2.95%, boosted by Nestle (+21%) and Dangote Sugar (+20.77%).

Newcomer Zichis topped the gainers’ chart with a 60.71% increase, followed by Union Dicon Salt (+60.15%) and Daar Communications (+55.26%).

Abbey Mortgage Bank led the decliners, falling 26.42% on profit-taking.

The Financial Services Industry remained the most active, accounting for nearly 60% of turnover volume, with 2.78 billion shares worth ₦74.06 billion traded.

Market breadth was strongly positive, with 79 stocks advancing against 27 decliners.

Analysts expect mixed sentiment in the coming week. AIICO Capital said, “We expect mixed market sentiment as PFAs continue to adjust portfolios towards fundamental stocks. However, profit-taking from the recent rally may emerge.”

Cowry Asset Management added that liquidity-driven buying should keep the market constructive, though mild pullbacks are possible.

“Market performance will depend on sustained institutional participation and sector rotation dynamics,” the firm noted.