According to market statistics, ten listed companies accounted for 77% of the market value of Nigerian Exchange (NGX) stocks. The Nigerian Exchange (NGX) has already recorded seven market movers since Nigerian banks joined the trillion naira valuation class, according to the breakdown.
Among the companies engaged are MTN Nigeria, Dangote Cement, Airtel Africa, BUA Cement, BUA Foods, and GTCO. N27.3 trillion is also the worth of Zenith Bank, Geregu Power Plc, Nestle Nigerian, and Stanbic IBTC.
The Nigerian stock market has been unable to attract important bellwether companies under private ownership. Some major firms with the potential to boost stock market size are staying away, citing accusations that the local exchange does not reward profit earners.
Last week, the stocks market soared to over N35.5 trillion on Friday as bullish trades outweighed negative trades. This was fueled by persistent bargain shopping on key indexes. According to MarketForces Africa, the aggregate market worth of telecommunication businesses is N10.559 trillion.
Geregu Power Plc is valued at N863 billion. Because of the continuing market rerating, the top five banks’ valuation has changed to N4.097 trillion, while two large cement companies have been valued at over N9.348 trillion.
Zenith and GTCO Plc contributed for N2.247 trillion of the Tier-1 bank’s N4.097 trillion market value, while the top lender by total assets was valued at roughly N575 billion. FBNH has paused its upward trajectory, settling at N610 billion on Friday as part of a capital-raising strategy.
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.
