Three Nigeria’s Big Firms Gained N1.15trn In 2021 – NGX
The three biggest companies listed on the nation’s stock exchange gained a total of N1.15tn last year, data obtained from the Nigerian Exchange Limited have shown.
The companies, namely Dangote Cement, MTN Nigeria Communications Plc and Airtel Africa Plc, accounted for 53.72 per cent of the market capitalisation of equities on the NGX as of the end of December.
An analysis of data obtained from the NGX showed that the five biggest listed companies boosted their combined market capitalisation by N520bn in April to N14.51tn.
The market capitalisation of all the 157 companies listed on the NGX stood at N22.30tn as of December 31, 2021, compared to N21.06tn at the end of 2020.
Dangote Cement, the country’s biggest listed company, saw its market cap grow to N4.38tn at the end of last year from N4.17tn on December 31, 2020.
MTN Nigeria boosted its market value to N4.01tn on December 31, 2021 from N3.46tn a year earlier while that of Airtel Africa rose to N3.59tn from N3.20tn.
BUA Cement Plc and Nestle Nigeria Plc were the fourth and fifth biggest companies on the stock exchange as of December 31, 2021.
BUA Cement saw its market cap drop to N2.27tn at the end of 2021 from N2.62tn a year earlier, while that of Nestle rose to N1.23tn from N1.19tn.
This week, BUA Foods Plc, a member of BUA Group, was listed on the Main Board of the Nigerian Exchange Limited, with its total issued capital admitted to trading.
The listing of the company’s 18 billion ordinary shares added N720bn to the market capitalisation of the NGX, further boosting liquidity in the Nigerian capital market and providing opportunities for wealth creation.
The Chief Executive Officer, NGX, Mr Temi Popoola, said in a recent interview with The PUNCH, said the bourse was strengthening the value proposition for corporates to consider the capital markets as a platform for raising capital.
He said, “Just as importantly, it is important that we work closely with policymakers to shape reforms and policies that are supportive of listing activity and the capital market at large.
“For example, many of the listings on the exchange today occurred as a result of government-related policy that was supportive of listing activity. At NGX, we are keen to provide a platform for both public and private sector players to raise capital to achieve their business objectives and achieve greater success in resource optimisation.”
He noted that over the years, changes to key policies across industries brought about a wave of listing activity, citing the banking consolidation of 2005 as a recent example.
Popoola said, “We are, therefore, actively involved in contributing to policy formulation and advocacy to ensure an enabling environment for listings.
“Finally, we need to attract the right types of listings to the exchange. Investors are generally looking to maximise their returns and it is important, as a result, that we can attract companies with strong growth potential to the exchange.”
The Vice-President, Prof. Yemi Osinbajo, said recently that the profit-taking activities of foreign and domestic institutional investors in the Nigerian stock market had created an excessive risk premium.
He said to usher in the return of foreign and domestic institutional participation, all government agencies and regulators in the financial system, among other key stakeholders, must work with the NGX to tackle the excessive risk premium within the market.