As the Nigerian stock market sustained momentum growth in First Quarter, 2025, a key development relevant to the pension industry is the performance of the NGX Pension Broad Index (NGXPBI), The Nation has learnt.
The NGX Pension Broad Index (NGXPBI), which serves as a benchmark is designed to reflect the performance of stocks typically invested by Pension Fund Administrators (PFAs).
This was shown in the First Quarter, 2025 of the National pension Commission (PenCom).
The report showed that as of the first quarter of 2025, the NGXPBI recorded resilient growth, closely tracking the overall market while maintaining a more stable outlook due to its emphasis on fundamentally sound companies.
This trend, according to PenCom, suggests improved returns for pension portfolios with equity exposures aligned with regulatory guidelines.
The report read: “The upward trajectory of the NGX Pension Broad Index (NGXPBI) reinforces the strategic importance of equity investments in boosting long-term pension fund performance.
Read Also: Aruna missing as African stars light up Tunis for 2025 ITTF-Africa Championships
PFAs stand to benefit from both capital gains and robust dividend payouts, particularly from firms in the banking and industrial sectors. Investor confidence was bolstered by improved policy clarity in the financial markets, enhanced foreign exchange liquidity, and strong dividend announcements by leading listed companies. The financial sector continued to gain from ongoing recapitalisation initiatives and sustained policy reforms by the Central Bank of Nigeria.
“The stock market growth was buoyed by strong corporate earnings, continued investor confidence, and improving macroeconomic indicators. The NGX All-Share Index (ASI) rose from 102,926.40 points at the start of the quarter and closed at 105,660.64 points as of 31 March 2025, reflecting a quarterly gain of 2.66%. Investors showed strong interest in key sectors, particularly consumer goods and banking, with several mid-cap stocks, such as Honeywell Flour Mill, Presco, and PZ Cussons, delivering impressive year-to-date returns of over 50%. [Source: NGX, April 2025]
“Market capitalization also followed a positive trajectory, supported by increased trading volumes and market breadth. Although detailed figures for Q1; 2025 capitalization are pending, the consistent rise in equity prices implies that the capitalization likely exceeded the ₦62.76 trillion recorded at the end of Q4:2024”, PenCom stated.