Nigeria’s equities market sustained its bullish momentum on Wednesday, adding approximately N970 billion to total market capitalisation as strong institutional inflows—largely from pension funds—boosted trading activity on the Nigerian Exchange (NGX).
The market capitalisation rose to N114.377 trillion from N113.496 trillion recorded in the previous session, while the All-Share Index (ASI) advanced by 0.78 per cent to close at 178,184.54 points, up from 176,809.43 points. The latest surge reinforces the NGX’s position as one of the best-performing markets globally this year, with year-to-date (YtD) returns now at 14.50 per cent.
Market breadth remained positive, with 49 gainers against 32 decliners, reflecting heightened buying interest across key sectors.
Pension Liquidity Fuels Selective Rally
Analysts attribute the rally largely to sustained liquidity injections from Pension Fund Administrators (PFAs), which oversee assets exceeding N27.45 trillion. With inflationary pressures eroding fixed-income returns, PFAs are increasingly rotating capital into variable income instruments such as equities to secure real returns.
The Pension Index rose to 8,465.55 points from 8,351.50 points, underscoring the growing influence of long-term institutional capital in shaping market direction.
“Investors should monitor the Pension Index as it often signals where long-term institutional ‘sticky’ capital is moving,” Vetiva research analysts noted in a recent report.
The renewed appetite for equities follows the National Pension Commission’s (PenCom) recent revision of investment limits for ordinary shares in RSA Funds I, II, III and VI-Active. The move aims to address implementation challenges linked to the Revised Regulation on Investment of Pension Fund Assets issued in September 2025. Analysts say the adjustments have introduced a fresh catalyst for equity positioning.
CardinalStone Research, in a February 11 note, observed that PFAs are likely to optimise allocations toward fundamentally strong stocks under the new framework.
Blue-Chip Stocks Lead Gains
Blue-chip counters dominated buying activity, with Nestle Nigeria Plc, Julius Berger Nigeria Plc and Transcorp Hotels Plc emerging as top performers.
Nestle Nigeria’s share price surged 10 per cent from N2,200 to N2,420, gaining N220. Julius Berger climbed 8.19 per cent from N230.80 to N249.70, buoyed by reports of strong 2025 revenue and signs of recovery in the construction sector.
Transcorp Hotels advanced 9.40 per cent from N174.50 to N190.90, while MTN Nigeria rose 1.09 per cent to N650. GTCO also gained 4.95 per cent, closing at N106 from N101.
Market analysts note that the rally is gradually transitioning from broad-based speculative gains to selective, earnings-driven growth. Institutional investors are increasingly targeting fundamentally sound stocks with strong earnings visibility and dividend prospects.
Earnings and Dividends in Focus
With several companies releasing their full-year results, attention is now shifting toward dividend declarations and valuation metrics.
CardinalStone Research expects investors to position ahead of anticipated FY’25 final dividends, while Coronation Research stated in its February 9 Model Equity Portfolio update that it would continue tracking earnings releases and adjust allocations based on valuation and prevailing sentiment.
“Looking ahead, we will continue to track earnings releases from portfolio constituents and reassess positions in the context of valuations and prevailing market sentiment, with a view to rebalancing the portfolio where necessary,” Coronation Research analysts said.
As pension funds evolve from passive safe-haven allocators into active market drivers, their growing footprint is increasingly shaping the trajectory of Nigeria’s capital market.