11 Companies Add N43.35trn To Market Cap In Nine Months

Dangote Cement Plc, Airtel Africa Plc, MTN Nigeria Communication Plc, BUA Foods Plc, BUA Cement Plc and six other blue-chip companies contributed about N43.35 trillion or 76.5 per cent to push the overall market capitalisation to N56.64 trillion in nine months of 2024.

Others are: Zenith Bank Plc, Guaranty Trust Holding Company Plc, Geregu Power Plc, Transcorp Power Plc, Oando Plc and Seplat Petroleum Plc

These 11 companies have earned their places in the listed companies’ trillion-naira market cap companies, driven by impressive corporate earnings and dividend payout to shareholders.

As of September 30, 2024, Nigeria’s stock market capitalisation garnered N15.7 trillion while these 11 companies contributed 76.5 per cent or N43.35 trillion.

Dangote Cement earned the top spot on the list with N9.07 trillion market capitalisation, followed by Airtel Africa with N8.27 trillion market capitalisation and MTN Nigeria recorded N4.01trillion in market capitalisation as of September 30, 2024.

The stock price of Dangote Cement in nine months of 2024 has appreciated by 66 per cent or N 212.1 per share to close at N532 per share as of September 30, 2024, from N319.9 per share it opened for trading this year.

The Cement manufacturing company has gained N3.6 trillion in market capitalisation this year on the backdrop of impressive performance. Dangote Cement emerged as one of Nigeria’s most profitable cement manufacturing companies, generating N292.96 billion profit before tax in the half year ended June 2024, about a 22 per cent increase from N239.86 billion in the half year ended June 2023.

BUA Food recorded N7.11 trillion market capitalisation, and BUA Cement at N3.73 trillion.

As of September 2024, Geregu Power, Seplat Energy and Transcorp Power have N2.88 trillion, N2.4 trillion and N2.26 trillion in market capitalisation, respectively.

In addition, GTCO in the banking sector has the highest market capitalisation, currently at N1.4 trillion, followed by Zenith Bank at N1.19 trillion and Oando with an estimated N1.03 trillion in market capitalisation as of September 30, 2024.

The recent performance and acquisition of NAOC have played a critical role in Oando’s soaring price.

The stock price of the integrated oil and gas service in nine months of 2024 has appreciated by 687per cent or N72.1 per share from N10.5 per share when it opened in 2024 to close September 30, 2024, at N82.6 per share. Oando towards the end of August 2024 completed its acquisition of Eni’s Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), in a landmark deal valued at $783 million.

The agreement, finalised in a signing ceremony in London, represents a transformative moment for Nigeria’s energy sector and highlights the growing prominence of indigenous players in the industry.

The acquisition, first announced in September 2023, came precisely a decade after Oando’s landmark $1.8 billion purchase of ConocoPhillips’ Nigerian assets. That previous transaction had significantly boosted Oando’s oil production from approximately 4,500 barrels to 50,000 barrels per day.

An elated Group Chief Executive of Oando, Wale Tinubu said, “The announcement marks the culmination of a decade of determination, resilience, and vision.

“This achievement is not just a triumph for Oando but for every indigenous energy company as we redefine our role in the Nigerian energy sector.

“Our focus now shifts to maximising the potential of these assets while supporting the nation’s production goals and exploring new opportunities in clean energy, agriculture, infrastructure, and mining.”

Oando had announced its unaudited 2023 full-year results, showing a 78.9 per cent growth in revenues to N3.5 trillion from N1.99 trillion reported in 2022.

Higher sales volumes drove the substantial increase, while the bottom line benefited significantly from foreign exchange gains related to crude oil earnings.

The company posted a profit after tax of N74.7 billion, a loss of N81.2 billion recorded in the previous year.

Findings showed that these firms are defying the odds by tightening their belts, and applying cost optimisation strategies and innovative solutions to navigate Nigeria’s weak macroeconomic environment and optimise the risk.

The stock market in 2024 has continued on a positive trajectory, attributable to President Bola Tinubu’s foreign exchange policies, removal of fuel subsidies that have attracted more foreign investors participation and impressive corporate earnings by listed companies.