As of September 3, 2024, the number of companies listed on the NGX with a market capitalisation exceeding N1trn increased to eleven, with Oando Plc joining the prestigious group. In dollar terms, eight out of these eleven companies have maintained a market capitalisation above US$1bn (approximately N2.19trn).
Dangote Cement Pc maintained the top list despite losing -18.99% in market capitalisation from N11.19trn recorded previously to N9.07trn, followed by Airtel Africa and BUA Foods with values at N8.27trn and N7.11trn, respectively. Compared to July 15, 2024, the market capitalisation for Geregu and Seplat closed flat, while Airtel Africa and BUA Foods grew by 4.76% and 3.95%, caused by an increase in their respective share prices from N2,100 to N2,200 and N379.90 to N394.90. Analysts have noted Transcorp Hotel Plc’s fall to the near N1trn class of companies and acknowledged Oando’s presence in the squad, which was majorly attributed to the surge in Oando’s share price from N16 as of July 15th, 2024, to N91 as of September 3rd, 2024.
Other companies on the list were BUA Cement (N3.86trn), MTN Nigeria (N3.78trn), and Transcorp Power Plc (N2.51trn). Geregu Plc (2.50trn) and Seplat Energy Plc (N2.19trn) closed flat, while GTCO Plc (N1.34trn) and Zenith Plc (N1.22trn) saw increases in their share prices.
In terms of Sector, the Financial Services, ICT, Industrial Goods, Oil and Gas, and Utilities sectors dominated the list with two companies each, while Consumer Goods had one (1).
The following eight companies are on the watchlist, showing strong potential to reach the N1 trillion market capitalisation mark. Despite the federal government’s windfall tax, analysts remain optimistic about financial service growth and expect more companies to join the N1 trillion club soon. This positive outlook could encourage investors to take long-term equity positions. They includes Transcorp Hotels Plc, UBA Plc, International Breweries Plc, FBN Holdings Plc, STANBIC Plc ACCESSCORP Plc, NESTLE Plc and WAPCO Plc
Oando Plc achieved significant growth, with its year-to-date (YTD) share price rising 766.67%, from N10.50 on December 29, 2023, to N91 as of September 3, 2024. This performance was largely attributed to the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited. Analysts expect this upward trend to continue, as the acquisition may notably improve the company’s comprehensive income statement for FY 2024 Results
The dip in the market cap started on July 25th, 2024, but rose on August 14th, 2024, to a market cap of N55.98trn. However, this upward rise was short-lived, as the market capitalisation fell shortly after dropping to a significant low on August 19th at N54.38trn. The market recovered in August, showing consistent growth throughout the month and supported a sustained upward momentum into September, likely to strengthen investors’ interest.