The ‘High & Mighty’ of Nigeria’s Stock Market
• 10 most capitalised stocks dazzle investors in H1
Festus Akanbi, in this report, profiles the 10 most capitalised stocks on the Exchange in the first half of the year, saying their robust position is a precursor of the anticipated greater performance of quoted firms in the second half of the year
Nigeria’s economic and business fundamentals have continued to respond positively to the tweaking of some policy measures by the current administration, raising optimism about the nation’s economic and business fundamentals in the second half of the year.
Economic analysts are of the view that the moderate improvements in the perception of the nation’s economy should be attributed to the boldness displayed by President Bola Tinubu’s administration in putting an end to the corruption-ridden fuel subsidy programme and the cessation of multiple foreign exchange windows within the first month of the administration.
Perhaps, one visible evidence that the nation’s economy is looking up is the current impressive performance of the capital market where 10 leading companies on the Nigerian Exchange Limited (NGX) were able to contribute a cumulative N25.6 trillion to overall N33.198trillion market capitalisation in the first six months period. Market capitalisation refers to the total value of all a company’s shares of stock. Knowing a company’s market cap can help you compare the relative size of one company versus another.
The list of the 10 most capitalised stocks as of June 30 included MTN Nigeria, Airtel Africa, Dangote Group, BUA Cement, BUA Foods, Zenith Bank, GTCO, Seplat Energy, and Geregu Power, respectively.
As a result of the significant gains by these 10 companies, investors on the NGX who have endured long periods of bearish sentiments had cause to smile as their wealth grew by N5.3 trillion in H1 amid audacious macroeconomic reforms under the new administration.
MTN Nigeria
The foremost telecommunications firm in Nigeria, MTN Nigeria, which traded at N274 per share on Wednesday, July 5, boasted of N5.56 trillion capital as of June 30 this year. MTN Nigeria is the Nigerian subsidiary of the MTN Group – a telecommunications group operating in 22 countries across Africa and the Middle East. Since its inception, MTN Nigeria has led the growth of the telecom industry to become the biggest mobile operator in the whole of West Africa. The company is listed on the Nigerian Exchange Limited (NGX) since May 16th, 2019. MTN is traded on the NGX under the ticker symbol “MTNN”.
Airtel Nigeria
Another telecom operator in this category is Airtel Nigeria, which recorded a capital base of N4.96 trillion as of June end. Meanwhile, a unit of its share price traded at N1,319.90 on Wednesday. Airtel is a leading provider of telecommunications and mobile money services with a presence in 14 African countries, primarily in East, Central, and West Africa. The company offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
Airtel Africa Plc was listed on the NGX on July 9th, 2019.
Dangote Cement
Dangote Cement is currently the third most valuable stock on the NGX with a market capitalisation of N 4.86 trillion, which makes up about 14.5% of the entire NGX equity market as of June end. The company engages in the manufacture, preparation, import, packaging, and distribution of cement and related products in Nigeria, and has plants or import terminals in nine other African countries.
The current share price of Dangote Cement (DANGCEM) is N285. DANGCEM closed on Tuesday at N285 per share on the NGX. Dangote Cement was listed on the exchange since October 26, 2010 and it traded. The cement company is traded on the NGX under the ticker symbol “DANGCEM”.
BUA Cement
With a share capital of N3.12 trillion as of June 30, BUA Cement’s share price was N83.15 per unit on Wednesday. The company is engaged in the manufacturing and marketing of cement products. It is the second largest producer in Nigeria after Dangote Cement. The company was founded in 2008 and is headquartered in Lagos, Nigeria. It offers its products under the brand name BUA Cement. It produces and markets cement products in the country. BUA Cement was created as a result of the consolidation of BUA Group’s cement holdings in Nigeria, namely, Obu Cement and Cement Company of Northern Nigeria (CCNN).
BUA Foods
BUA Foods is a leading food and fast-moving consumer goods (FMCG) business that processes, manufactures, and distributes food products as well as packaged food. The company is a member of BUA Group, a leading conglomerate in Nigeria with business interests spread across the food and infrastructure sectors. BUA Foods’ products currently include fortified and non-fortified industrial sugar, flour, and pasta. As of June 30, it boasted of a capitalisation of N2.44 trillion while a unit of its share price was sold at N135.75 on Wednesday.
Zenith Bank
The undisputed leader in the banking sector category, Zenith Bank grew its share capital to N1.08 trillion in June end. Meanwhile, its share price was traded at N34.10 per unit on Wednesday. Zenith Bank Plc is a Nigerian commercial bank providing services to corporate, commercial, and individual customers. The company’s core businesses include corporate and investment banking, commercial and consumer banking, trade services and foreign exchange, treasury and cash management services, and other non-bank financial services through its subsidiaries.
GTCO
With a share capital hitting N1.03 trillion on June 30, GTCO has shown resilience as it maintained its position as one of the most capitalised stocks. Its share price as of Wednesday was N36. It is traded on the NGX under the ticker symbol “GTCO” Guaranty Trust Holding is currently the seventh most valuable stock on the NGX with a market capitalisation of N1.06 trillion, which makes up about 3.16% of the NGX equity market as of July 5, 2023.
Nestle Nigeria
Nestle Nigeria is currently the eighth most valuable stock on the NGX with a market capitalisation of N990 billion on June 30, 2023. Its share price was N1,200 on Wednesday. Nestle is traded on the NGX under the ticker symbol “NESTLE”. It is one of the largest food and beverage companies in Africa.
Seplat Energy
Seplat Petroleum Development Co. is currently the ninth most valuable stock on the NGX with a market capitalisation of N824 billion, which is about 2.46% of the Exchange equity market. Seplat Petroleum Development is traded on the NGX under the ticker symbol “SEPLAT and a unit of its share price was sold for N1,399.80. Seplat was formed as Seplat Petroleum Development Company in June 2009 through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ventures Limited to specifically pursue upstream oil and gas opportunities in Nigeria and in particular divestment opportunities arising out of the incumbent Major IOC’s portfolios.
Geregu Power
At the end of the first half of the year, Geregu Power Plc emerged as the 10th most valuable stock on the NGX with a market capitalisation of N750 billion, which was about 2.24% of the NGX equity market. With a share price of N285 on Wednesday, Geregu Power is traded on the NGX under the ticker symbol “GEREGU”. Acquired in 2013, with generating plants in Ajaokuta, Geregu is one of Nigeria’s leading GENCOs that uses gas turbines as a clean energy source to generate power.
