At the close of the third quarter of 2024, Dangote Cement, Airtel Africa, and BUA Foods emerged as the top three most valuable companies in Nigeria, collectively accounting for 43% of the total equities market capitalization. This marks a significant moment in the Nigerian stock market, which experienced fluctuations but ultimately gained N33.66 billion, all of which was recorded in September, indicating a notable recovery.
Despite the overall market improvement, the equities market had previously faced challenges, losing N1.09 trillion in July and an additional N36.04 billion in August. However, September proved to be a turnaround month, with the market gaining N1.16 trillion.
The All-Share Index, a key measure of market performance, ended the quarter at 98,558.79 points, reflecting a decline of 1.50% from the previous quarter’s closing of 100,057.49 points at the end of June 2024. Additionally, the market capitalization saw a slight decrease from N56.60 trillion in July to N56.3 trillion in September.
Within the banking sector, only Guaranty Trust Holding Company and Zenith Bank surpassed the N1 trillion mark during the quarter, unaffected by the ongoing market recapitalization exercise in the industry. The top ten companies in Nigeria accounted for approximately 75% of the total market, with a combined valuation of N42.33 trillion, and all were valued above N1 trillion each.
According to data from the Nigerian Exchange (NGX) compiled by Nairametrics Research, the rankings of the most valuable companies as of September 2024 are as follows:
- Dangote Cement (Industrial Goods) – N9.07 trillion
Dangote Cement retained its position as Nigeria’s most valuable company with a market capitalization of N9.07 trillion, representing 16% of the equities market. However, it experienced a 19% decline in stock price during the quarter. - Airtel Africa (ICT) – N8.27 trillion
Airtel Africa surpassed MTN Nigeria to become the second most valuable company, with a market capitalization of N8.27 trillion, accounting for 15% of the Nigerian equities market. The stock price appreciated by 5%. - BUA Foods (Consumer Goods) – N7.11 trillion
BUA Foods ranked third, representing approximately 13% of the market with a capitalization of N7.11 trillion. - MTN Nigeria (ICT) – N4.01 trillion
MTN Nigeria’s market capitalization fell to N4.01 trillion, accounting for 7% of the market, following an 11% decline in share price. - BUA Cement (Industrial Goods) – N3.72 trillion
BUA Cement maintained its fifth position with a market capitalization of N3.72 trillion, representing about 7% of the market, despite a 23% decline in its stock price. - Geregu Power (Services) – N2.88 trillion
Geregu Power climbed to sixth place, representing 5% of the market capitalization with a 15% appreciation in share price. - Seplat Energy (Oil & Gas) – N2.41 trillion
Seplat led the Oil & Gas sector with a valuation of N2.41 trillion, accounting for 7% of the market and an 8% increase in share price. - Transcorp Power (Services) – N2.26 trillion
Transcorp Power, listed on the stock exchange in 2023, held steady at a valuation of N2.26 trillion, representing 4% of market capitalization, although its stock price declined by 19%. - Guaranty Trust Holding Company (Banking) – N1.41 trillion
GT Holding ranked ninth with a valuation of N1.41 trillion, representing 2.5% of the total equity market, appreciating by 7%. - Zenith Bank (Banking) – N1.19 trillion
Zenith Bank ranked tenth, with a market capitalization of N1.19 trillion, contributing 2% to the total market and achieving a 6% increase in stock price.
The diverse representation of sectors among Nigeria’s top companies underscores the market’s resilience and highlights the ongoing opportunities for growth within various industries as the economy navigates the challenges ahead.
