The market capitalisation of the top 10 companies listed on the Nigerian Exchange Group (NGX) NSE30 index witnessed an impressive growth of N1.6 trillion year to date, data compiled by BusinessDay has shown.
The NSE30 index comprises the 30 largest and most actively traded stocks on the Nigerian Stock Exchange, representing various sectors of the economy. The companies are reviewed based on their closing prices at the end of trading on Friday.
The exceptional growth observed in the first half of 2023 highlights the upward trajectory of these top-performing companies and their contribution to the overall market performance.
Analysts said the recent surge in market performance can be attributed to the positive effects of fuel subsidy reforms and exchange rate unification, two key measures advocated by international entities like the World Bank and the IMF to promote economic stability.
“The market was interpreted as a very good stance so that is why there is a significant rise in market cap,” one senior analyst told BusinessDay.
According to the analyst, the observed growth is a reflection of the much-awaited market reforms, signalling a positive and substantial growth trend in line with the current market dynamics.
BusinessDay obtained data from the NGX, specifically analyzing the performance of NSE30 companies during the reviewed six-month period. The top 10 best-performing firms identified from this data include Nestle, Dangote Cement, Dangote Sugar, MTNN, Okomu Oil, Presco, Seplat, Airtel Africa, BUA Cement, and Guinness.
The firm’s market capitalisation increased to N18.82 trillion on June 22 2023, from N17.12 trillion recorded on January 3, 2022, appreciating by 9.92 percent year to date.
MTN Nigeria Communications Plc
As of June 22, 2022, MTN Nigeria Communications Plc achieved the highest market value in the telecommunications industry, reaching N5.39 trillion. This figure represents a notable 23 percent increase from the N4.38 trillion recorded in the first week of 2023.
During the period from January 3, 2023, to June 22, 2023, MTN’s share price rose from N215.23 to N265 per share.
In terms of financial performance, MTN experienced growth in its profit after tax, reaching N101.3 billion in the first quarter of 2023, compared to N96.82 billion recorded in the same quarter of 2022.
Additionally, the earning per share of MTN stood at N4.94 per share in the first quarter of 2023, demonstrating an increase from N4.76 per share reported in the corresponding quarter of 2022.
Dangote Cement Plc
Dangote Cement Plc, on the other hand, exhibited a market capitalisation of N4.84 trillion as of June 22, 2023, positioning it as the second-highest by market capitalisation. This marked a significant surge from N1.048 trillion recorded on January 3, 2023.
During the same period, Dangote Cement’s share price rose from N261.5 to N284.5.
In terms of financial performance, the company reported a profit after tax of N109.5 billion in the first quarter of 2023, reflecting a 3.4 percent increase from the N105.9 billion recorded in the corresponding quarter of 2022. Moreover, the earning per share of Dangote Cement stood at N6.44 per share in the first quarter of 2023, compared to N6.18 per share in the same quarter of 2022.
Read also: Guinness, Champion Breweries show strong cash flows in first quarter results
Dangote Sugar Refinery Plc
Dangote Sugar Refinery Plc, as of June 22, 2023, experienced a rise in its current market value, reaching N3.45 trillion compared to N3.17 trillion recorded on January 3, 2023. This indicates a notable increase of 8.8 percent during the period under review.
The share price of the sugar manufacturing company stood at N284.1 on June 22, 2023, displaying growth from N260.99 recorded on January 3, 2023.
In terms of financial performance, Dangote Sugar Refinery witnessed a significant 44.3 percent increase in profit, with figures rising to N12.8 billion in the first quarter of 2023, compared to N8.87 billion in the same period of 2022.
Furthermore, the company declared earnings per share of N1.05 for the first quarter of 2023, representing a growth from N0.73 per share recorded in the same quarter of 2022.
Bua Cement Plc
Bua Cement Plc holds the fourth position on the list with a market valuation of N3.048 trillion as of June 22, 2023. This figure indicates a decline of 7 percent from the N3.28 trillion recorded on January 3, 2023.
The share price of Bua Cement declined by 7.1 percent, reaching N90 as of June 2023 from N96.87 as of January 2023.
In terms of financial performance, the company reported a profit of N26.8 billion for the first quarter of 2023, compared to N33.14 billion recorded in the same quarter of 2022.
Similarly, Bua Cement’s earnings per share saw a decline to N79 from N98 per share recorded in the same quarter of 2022.
Nestle Nigeria Plc
Nestle’s market valuation as of June 2022 amounted to N991 billion, an 8.67 percent increase from N912 billion recorded for the period dated January 3rd 2023.
The FMCG firm began the year with a share price of N1,150 per share as of January 3rd 2023 and gained to N1,250 recorded as of June 222 2023.
Nestle Nigeria, in its first quarter unaudited results recorded a 10 percent drop in profit after tax to N16.21 billion from N17.98 billion recorded in the same quarter of 2022.
Consequently, the firm declared earnings per share in the first quarter of 2023 amounting to N20.45 from N22.68 recorded in the same quarter of 2022.
Airtel Africa
The telecommunication firm’s market capitalization amounted to N449 billion as of June 2023, representing a 5.6 percent increase from N425 billion recorded as of January 3rd 2022.
The share price of the firm as of June 22, 2023, amounts to N119.4, a 5.7 percent growth from N112.96 recorded as of January 3rd, 2023.
Okomu Oil Palm Plc
As of June 22, 2023, Okomu Oil Palm Plc, a palm oil firm, achieved a current market valuation of N215 billion. This reflects a significant increase of 36.9 percent from the N157 billion recorded in January 2023.
The share price of Okomu Oil Palm as of June 22, 2023, amounted to N225.64, showing growth from N164.74 recorded on January 3, 2023.
In terms of financial performance, the company reported a profit of N10.18 billion for the first quarter of 2023, indicating a 7.2 percent increase from N9.5 billion in the same period of 2022.
Furthermore, Okomu Oil Palm declared earnings per share of N1067 for the first quarter of 2023, compared to N996 per share recorded in the corresponding period of 2022.
Presco Plc
Presco Plc, another player in the palm oil industry, witnessed an increase in market valuation after trading on June 22, 2023, amounting to N179 billion, up from N130 billion recorded on January 3, 2023.
The share price of Presco as of June 22, 2023, stood at N178.79, displaying growth from N130.04 recorded on January 3, 2022.
Guinness Nigeria Plc
Guinness Nigeria Plc, a prominent brewer, observed a market valuation of N175 billion as of June 22, 2023, up from N153 billion recorded on January 22, 2023.
The share price of Guinness Nigeria as of June 22, 2023, increased to N80 from N69.85 recorded on January 22, 2023.
In its recently released financials for the three-month period ending on March 31, 2023, the company reported a decrease in profit after tax, amounting to N1.84 billion, compared to N6.45 billion recorded in the same period of the previous year.
Guinness Nigeria also declared earnings per share of N268 for the first quarter of 2023, compared to N698 per share recorded in the corresponding period of 2022.
Seplat Energy Plc
Seplat Energy Plc, an upstream oil and gas firm, achieved a market valuation of N72 billion as of June 22, 2023, compared to N62 billion recorded on January 3, 2023.
The share price of Seplat Energy as of June 22, 2023, increased to N122.22 from N104.8 recorded on January 22, 2023.
The company experienced significant profit growth, with figures reaching N26.4 billion in the first quarter of 2023, indicating a 220.7 percent increase from N8.23 billion recorded in the same quarter of 2022.
Additionally, Seplat Energy declared earnings per share of N45.38 for the first quarter of 2023, compared to N11.70 recorded in the same quarter of 2022.
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