20 Companies Account for 81% of Nigerian Stock Market Capitalisation
Just twenty companies account for 81.16% of Nigerian Exchange (NGX) market capitalisation at the close of the trading session on Friday, MarketForces Africa Research said in a note.
With combined value of N41.385 trillion, MTN Nigeria, Dangote Cement, Airtel Africa, BUA Foods and BUA Cement alone accounted for 46.30% of Nigerian Exchange market capitalisation
Details from MarketForces Africa’s finding showed that MTN Nigeria Plc (N10.077 trillion) outpaced its market contenders—Airtel Africa, Dangote Cement, and BUA Foods—to become the most valuable listed stock in terms of market value.
Dangote Cement Plc (N8.914 trillion) has now outpaced Airtel Africa, leaving the telecom company at fourth position after sustained top rank as market mover for a long time.
But Airtel Africa stopped breathing at the market value of N8.683 trillion in the Nigerian stock market with persistent thin transactions, which reflected tight ownership.
BUA Foods Plc, with N8.701 trillion in market value, has become the third on the list, and the consumer goods sector category king has A potential to raise its head higher among NGX one trillion market cap stocks.
With N5.01 trillion in market value after its recent monster rally fuelled by earnings rebound, BUA Cement Plc rose to take position as 5th largest listed company by market cap in the local bourse.
The first banking name to make the mark as market mover, GTCO ranked sixth on the list of most valuable stock in Nigerian Exchange.
It market capiatlisation settled at N3.624 trillion on Friday ahead of earnings release. Stockbrokers, and investors told MarketForces Africa GTCO has lowest low man risks among its major contenders.
Its move to list on London Stock Exchange reflects its strong corporate governance and ability to match regulatory demand at highest standard possible. “I dare some banks in Tier-1 category to try London Stock Exchange listing – It will be close to impossible for many of them”, a Broadstreet expert said in a private discussion with MarketForces Africa.
Zenith Bank Plc trailed GTCO, and Ajose Adeogun based lender is seen as the major rival of the orange branded financial services company. Zenith Bank stock market value closed at N3.141 trillion in the equity market on Friday ahead of its earnings release.
Stockbrokers told MarketForces Africa that Zenith Bank will keep pace with interim dividend payment as the bank promised to exit forbearance in June. This may affect earnings results but Zenith Bank is noted to have strong earnings fuelling fundamentals to weather regulatory requirement.
Ruling the world of its own. Geregu Power’s market performance has been impressive so far, though the stock appears to have stopped the earlier momentum seen after it became a listed company a few years ago.
The company share price has failed to respond to earnings results; hence, its market valuation has flatlined for a long time—responding to nothing, not even a general downturn or market correction.
Ranked on the 9th step in the ladder, Lafarge Africa, whose shares are trading under the ticker WAPCO, has become one of the market movers to reckon with in the stock market. Its market capitalisation closed at N2.4 trillion. The company is the third leg of the cement oligarchy in the Nigerian market.
Transcorp Power is the 10th largest brand in the Nigerian Exchange by market value. Trading data showed the power generating company’s market value settled at N2.4 trillion, the same level as Lafarge Africa. #20 Companies Account for 81% of Nigerian Stock Market Capitalisation
MTN Nigeria (N10.077trn), Dangote Cement (N8.914trn), Airtel Africa (N8.683trn), BUA Foods (N8.701trn), BUA Cement (N5.01trn), GTCO (N3.624trn), Zenith Bank (N3.141trn), Geregu Power (N2.853trn), and Lafarge (N2.4trn).
Others are Transcorp Power (N2.4TRN). International Breweries (N2.32trn), Aradel Holdings (N2.26trn), UBA (N2.02trn) Stanbic (N1.61trn) Presco (N1.55trn) Transcorp Hotels (N1.53trn) Nestle Nigeria (N1.498trn) Access Holdings (N1.492trn), FirstHoldco (N1.398trn) and Fidelity Bank (N1.06trn) FirstHoldCo: Strong Top-Line Growth, But Profitability Tells a Cautionary Tale
