The Nigerian Exchange Limited (NGX) has released the outcome of its full-year 2025 market index review, confirming a reshuffle that underscores shifting investor sentiment, changing market fundamentals, and evolving sector dynamics within Nigeria’s capital market.
In a notice published by the Exchange, NGX said the reviewed indices became effective at the opening of trading on Friday, January 2, 2025, in line with its periodic rebalancing framework designed to ensure that indices remain representative of the market.
A major highlight of the review was the inclusion of Guinness Nigeria Plc, Presco Plc, and Wema Bank Plc in key indices, reflecting their stronger market capitalization, improved liquidity, and enhanced compliance over the review period. Their additions came at the expense of several firms, including United Capital Plc, Access Corp, International Breweries, and Stanbic IBTC, which were dropped from select indices following changes in their relative rankings.
At the flagship NGX 30 Index, which tracks the 30 most capitalized and liquid equities on the Exchange, Guinness Nigeria Plc replaced United Capital Plc. The inclusion points to rising investor confidence in Guinness, supported by its strong price performance and liquidity during the year. The brewer also emerged as the best-performing stock in the consumer goods sector in 2025.
NGX clarified that United Capital’s removal does not imply weak fundamentals but rather a relative decline in its standing against the index’s selection criteria during the review window.
Sector-based indices recorded limited movement, suggesting stability across key segments of the market. In the NGX Insurance Index, Mutual Benefits Assurance was added, displacing Guinea Insurance, while the NGX Oil and Gas Index saw Japaul Gold & Ventures Plc replace MRS Oil Nigeria. The banking, consumer goods, and industrial goods indices recorded no changes, indicating sustained leadership by existing constituents.
Notable changes were also recorded in the NGX Pension Index, which comprises stocks eligible for investment by pension fund administrators. Wema Bank Plc gained entry into the index, while International Breweries exited, reflecting shifts in free float levels, liquidity metrics, and regulatory compliance.
In the NGX Lotus Islamic Index, which tracks Shariah-compliant equities, Presco Plc was added. The move reinforces growing investor interest in agriculture-linked and export-oriented companies that align with Islamic finance principles.
Broader reshuffling was observed across thematic and partner indices. The NGX Pension Broad Index admitted the Nigeria Infrastructure Debt Fund, while Regency Alliance and Veritas Kapital were removed. The Afrinvest Bank Value Index added Wema Bank, Jaiz Bank, Access Holdings, and Stanbic IBTC, signaling renewed optimism around both tier-one and mid-tier banking stocks.
Meanwhile, the Afrinvest Dividend Yield Index welcomed Dangote Cement, Okomu Oil, Vitafoam, and Conoil, underscoring investors’ preference for high-dividend-paying stocks in a high-interest-rate environment. The Meristem Growth Index recorded additions, including BUA Cement, Lafarge Africa, AXA Mansard, AIICO, CAP, Conoil, and United Capital, reflecting companies with strong earnings growth momentum. On the other hand, the Meristem Value Index saw new entries such as ETI, Julius Berger, and NEM Insurance, while Dangote Sugar, TotalEnergies, and Lafarge Africa were removed.
Overall, the 2025 index review highlights the dynamic nature of Nigeria’s equity market, with changes driven by shifts in market capitalization, liquidity, compliance, and sector performance. Analysts note that the rebalancing is expected to influence both passive and active investment strategies, as fund managers realign portfolios to reflect the updated index composition.
WHAT YOU SHOULD KNOW
The NGX 2025 index review reflects shifting market leadership driven by changes in market capitalization, liquidity, and compliance, with Guinness Nigeria, Presco, and Wema Bank emerging as key gainers—signalling evolving investor preferences and influencing portfolio strategies across Nigeria’s capital market.
