NGX Market Cap Up N1.45trn on 98% Contribution by Seplat, Dangote Cement, 15 Others

As the stock market of the Nigerian Exchange Limited (NGX) appreciated by N1.45trillion in April, a total of 17 fundamental companies contributed about 98 per cent to market capitalisation in the month under review.

Analysis of trading data showed that the overall market capitalisation closed at N26.761 trillion in April 2022 from N25.312 trillion in March, representing an increase of N1.45 trillion.

The 17 companies, according to THISDAY findings posted impressive corporate earnings in 2021 financial year and sustained the performance in their unaudited financial statements for first quarter ended March 31, 2022 to accumulatively gather N1.42 trillion in market capitalisation in April.

The 17 companies are two listed telecommunication companies, four financial institutions; two cement manufacturing companies, among others.

They are; Seplat Energy Plc, Dangote Cement Plc, Lafarge Africa Plc., Zenith Bank Plc , United Bank For Africa Plc, Guaranty Trust Holding Company Plc and Stanbic IBTC Holdings Plc

Others include; MTN Nigeria Communications Plc and Airtel Africa Plc, Nestle Nigeria Plc, Guinness Nig Plc, Nigerian Brew. Plc, Presco Plc, Julius Berger Nig. Plc., Flour Mills Nig. Plc, Vitafoam Nig Plc, Cadbury Nigeria Plc,

Among the top market capitalisation gainers in the month of April was Airtel Africa with a stock price gain of N125.60 or 9.96 per cent to contribute N472.02billion to market capitalisation, while Dangote Cement that appreciated by N18.90 or 6.9 per cent to close trading at N292.40 per share gained N322.07billion in market capitalisation.

Capital market analysts stated that Dangote Cement impressive earnings in Q1 2022 enhanced investors buying interest, stressing that the cement manufacturing company has maintained stronger fundamentals over the years.

The company, which is a competitor of BUA Cement Plc and Wapco Plc, has a total Market capitalization of N4.98 trillion as of April 2022.

Dangote Cement is the second most-valued company quoted on the exchange and makes up roughly 18.6per cent of the total market capitalization of all stocks.

The Q1 2022 financial result revealed a profit of N105.85 billion during the period, representing an 18per cent increase Y-o-Y. Dangote Cement’s revenue for the period stood at N413.18 billion, an increase of 24.20 per cent from the corresponding period of 2021.

However, Seplat petroleum with about N270 or 29.03 per cent gain in stock price accounted for N158.88billion market capitalisation and Nigerian Breweries with N134.46billion in market capitalisation following N16.65 or 41.16 per cent gain in stock price to N57.10.

For the banking stocks, the likes of Zenith Bank with N2.10 or 9.4 per cent increase in stock price grained N65.9billion in market capitalisation as GTCO gained N1.60 or 7.14 per cent to gained N47.09 billion in market capitalisation in April 2022.

Speaking with THISDAY, the vice president, Highcap securities limited, Mr. David Adnori explained that as investors’ appetite grew, the prices of stocks kept pushing up, hence the reason the prices of stocks were high in April.

According to him, “Also, April saw the influx of Q1 2022 numbers which were impressive. We have seen Airtel Africa, Zenith Bank, UBA, and Dangote Cement reporting decent increase in profit after tax (PAT) and we saw investors scrambling to make sure they qualify for the dividends and so I think that sentiment should continue even in the new month.

“I think we might see a bit of caution on the part of investors because we are not expecting any of the major Q1 2022 earnings and so even if we see a bit of rally, it will be just a few stocks that investors are betting on do pretty well on the back of Q1 numbers especially for those that pay interim dividends.”

The chief operating officer, InvestData Limited, Mr. Ambrose Omordion noted that most listed companies are currently undervalued over the effect of COVID-19, stressing that local and foreign investors opted to take positions in April.

On market outlook, analysts at Afrinvest Limited said, “Although we expect the positive sentiment from dividend payments to linger into early May, we think the market might begin to enter a quiet mood in the later part of the month.”