10 Companies Account for 77% of NGX Market Capitalisation
Ten listed companies accounted for 77% of Nigerian Exchange (NGX) equities market capitalisation, market data screened by MarketForces Africa showed. The breakdown shows that the Nigerian Exchange (NGX) has now registered seven market movers after Nigerian banks made an entry into the trillion naira valuation class.
The companies include MTN Nigeria, Dangote Cement, Airtel Africa BUA Cement, BUA Foods and GTCO. Others are Zenith Bank, Geregu Power Plc, Nestle Nigerian, and Stanbic IBTC worth N27.3 trillion.
The Nigerian bourse has failed to attract some bellwether companies in private hands. Some large companies that have the ability to boost stock market size are staying aloof amidst criticism that the local exchange isn’t rewarding earnings performers.
Last week, the equities market surged to about N35.5 trillion on Friday as bulls overpowered bearish trades. This was driven by sustained bargain hunting witnessed on key indices. MarketForces Africa review shows that the telecommunication companies’ combined market valuation printed at N10.559 trillion.
Geregu Power Plc valuation printed at N863 billion. Due to the ongoing market rerating, the top five banks’ valuation shifted to N4.097 trillion, and two major cement names were priced at about N9.348 trillion.
Of the Tier-1 bank’s N4.097 trillion market value, Zenith and GTCO Plc accounted for N2.247 trillion, while the largest lender by total assets was valued at about N575 billion. Amidst a plan to raise fresh capital, FBNH has halted its uptrend, settled at N610 billion on Friday and UBA was priced at about N506 billion. Tier-2 bank, Stanbic IBTC has heated up to N901 billion.
BUA Foods has raced ahead of Nestle Nigeria in terms of market valuation, being one of the falling angels in the market. Nestle Nigeria lost its market position as investors’ sentiment shifted away from the consumer goods index amidst challenges in the economy.
Nestle Nigeria was priced at N931 billion while BUA Foods’ valuation was N2.443 trillion.
Data from the Nigerian bourse showed that Dangote Cement Plc has reclaimed its position as the most valued brand as the company valuation nears N6 trillion, followed by MTN Nigeria (N5.599 trn) and the falling angel, Airtel Africa came third on the rank (N4.960).
BUA Cement followed these bellwethers at N3.35 trillion followed by BUA Foods (N2.443trn) before the two new entrants into the trillion valuation class. Zenith Bank opened entry into the category ahead of GTCO. However, GTCO has become more popular among alpha seekers, causing it to beat its rival stock market valuation.
The stock market priced GTCO N1.139 trillion on Friday while investors placed N1.108 trillion on Zenith Bank. Nigerian exchange has hundreds of less attractive listed stocks. Despite the recent rally, stockbrokers have maintained the view that stocks still have large upside potential.