Norrenberger Equity Model outperforms NGX with 82% return

Norrenberger’s Equity Portfolio Model recorded an 82 per cent return in 2025, outperforming key Nigerian stock market benchmarks for the second consecutive year, according to performance data released by the firm.

The model exceeded the NGX All-Share Index, which returned 52 per cent, and the NGX 30 Index, which posted a 50 per cent gain during the year.

The 2025 performance followed a similar trend in 2024, when the equity model delivered a 48 per cent return, higher than the NGX All-Share Index gain of 38 per cent for the same period.

Data from the portfolio showed that returns were generated from a mix of equities across telecommunications, consumer goods, banking, energy and insurance sectors.

“The portfolio’s success in 2025 was driven by a carefully curated mix of ten high-quality stocks spanning key sectors of the Nigerian economy, including telecommunications, consumer goods, banking, energy, and insurance. Sector selection was informed by Norrenberger’s macroeconomic outlook for 2025, particularly expectations around earnings recovery following FX-induced losses in consumer goods and telecommunications companies after the naira devaluation. Stock selection combined strong earnings fundamentals with technical analysis, enabling the portfolio to capture both cyclical recovery opportunities and structural growth themes, while maintaining a disciplined approach to risk management,” said the company. Data from the company indicated that MTN Nigeria emerged as the largest contributor to the performance of the model, with the stock recording a 156 per cent return during the year. Other notable gainers in the portfolio included NASCON Allied Industries, which returned 243 per cent; Dangote Sugar, with an 85 per cent gain; and BUA Cement, which rose by 92 per cent.

Within the banking sector, Zenith Bank gained 36 per cent, while Stanbic IBTC Holdings rose by 74 per cent over the period. AXA Mansard Insurance and Jaiz Bank posted gains of 67 per cent and 52 per cent, respectively.

Not all holdings delivered positive returns. Transcorp Power declined by 15 per cent in 2025, while Aradel Holdings posted a modest 12 per cent gain.

The portfolio was composed of ten equities, with individual stock weights ranging from seven to 15 per cent as of 31 December 2025.

Market data showed that while the broader equity market recorded strong gains in 2025, performance was uneven across sectors, with select stocks accounting for a significant portion of overall returns.

Source: https://punchng.com/norrenberger-equity-model-outperforms-ngx-with-82-return/