The NGX Lotus Islamic Index has emerged as the top-performing index for the first quarter of 2025, recording a notable 8.56% increase and outperforming its peers on the Nigerian Exchange. In contrast, the NGX All-Share Index (ASI), a broader measure of market performance, rose by 2.66% during the same period.
While this performance is more moderate compared to the staggering 37.19% jump the Lotus Index posted in Q1 2024, it still places the index at the forefront of market activity. Last year, the index closed with an impressive year-to-date return of 50.56%, reflecting sustained investor interest in Shari’ah-compliant equities.
Trailing the Lotus Index was the NGX Afriinvest Value Index, which ended the quarter with a 7.26% gain, closing at 2,646.53 basis points. This, however, represents a slowdown from the 9.85% growth it recorded in the same quarter of the previous year.
Other notable indices also delivered positive results. The NGX Banking Index appreciated by 6.96%, while the NGX Corporate Governance Rating System (CGRS) Index edged up by 6.93%. Additionally, the NGX Meristem Growth Index climbed by 6.77%, closing at 6,930.25 points on March 28, 2025.
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Despite the across-board gains, the pace of growth in Q1 2025 was generally more subdued than in Q1 2024. Analysts suggest that the tempered performance could be linked to increased profit-taking by investors following the market rally of the previous year. The realization of gains may have led to a decline in buying momentum, placing a cap on further advances during the quarter.
Overall Market Overview
Data obtained from Nairametrics reveals that the NGX All-Share Index began the year at 102,926.40 points and closed the quarter at 105,660.64, gaining 2,734.24 points or 2.66%. Market capitalization rose from ₦62.76 trillion in January to ₦66.27 trillion by the end of March, reflecting a quarter-on-quarter increase of approximately ₦3.5 trillion.
Performance Breakdown of the NGX Lotus Islamic Index
According to figures from the Nigerian Exchange and tracked by Nairametrics, the NGX Lotus Islamic Index started the quarter at 6,955.89 points and closed at 7,551.18—registering a robust 8.56% gain.
The index, which tracks 15 Shari’ah-compliant stocks vetted by a recognized Shari’ah Advisory Board, is reviewed semi-annually to ensure continued compliance. It employs a market capitalization-weighted methodology and focuses on companies across diverse sectors of the economy.
Among the companies included in the index are industry giants such as Dangote Cement, BUA Foods, MTN Nigeria, and Jaiz Bank, along with others like CAP, Okomu Oil, Aradel, WAPCO, NASCON, and NAHCO.
As of Q1 2025, these constituent stocks posted an average year-to-date return of 14.82%. NASCON led the group with an impressive 46.76% YtD return, closely followed by NAHCO with a 45.28% gain—both contributing significantly to the index’s overall performance.
Conclusion:
The NGX Lotus Islamic Index’s performance underscores the continued relevance and attractiveness of Shari’ah-compliant investment vehicles in Nigeria’s evolving capital market. As the year unfolds, market participants will be watching closely to see if this momentum can be sustained into the second quarter and beyond.
