Equities market capitalization down N1.58trn in one week

By Temitope Adebayo

Despite the equities segment of the Nigerian Exchange (NGX) closing the last two trading sessions of the week bullish, the combined market capitalization of stocks worth over one trillion depreciated by 8.40 percent to close at N17.19 trillion from N18.76 trillion during the previous week, reflecting a loss of N1.58 trillion.

Although, NGX on Friday sustained the previous day’s positive sentiment, as market performance indicators inched higher by 0.15 percent. But this was after a large loss record seen in the first three trading sessions, the market halted the downward trend on Thursday, and sustain its fresh bullish move on Friday with an N35.14 billion gain.

Analysis of stocks that accounted for the huge loss during the week under review include; AIRTELAFRICA, BUA CEMENT, DANGOTE CEMENT, BUAFOODS, and MTNN Plc.

For instance, Airtel Africa Plc’s share price fell drastically during the week from N1, 800.00 to N1, 312.20. Similarly, the market capitalization of the telecom company dropped from N6.76 trillion to N4.93 trillion at the end of the trading week.

But despite the huge loss, Airtel Africa Plc ended the week as the most capitalized company on the exchange once again, leading the SWOOTS strongly, with MTNN, its competitor and third-most capitalized stock, far behind.

Similarly, MTNN Plc’s share price depreciated by 2.01 percent to close at N195.00 per share, taking its market capitalization to N3.97 trillion at the end of the trading sessions of the week.

As a competitor of Airtel Nig Plc, MTN’s total market capitalization is N962 billion lower than Airtel Africa’s current market value. The telecom firm is the third-most capitalized company on the NGX.

The share prices of two other companies under the SWOOT classification remained unchanged. Their performances include; Dangote Cement Plc’s share price, which was unchanged at N245.00 at the end of the trading week.

The company, which is a competitor of Bua Cement Plc and Wapco Plc, and the most capitalized cement producer on the NGX, has a total Market capitalization of N4.17 trillion as of the market close of trading activities for last week.

Dangote Cement Plc is currently the second most-valued company quoted on the exchange and makes up roughly 24 percent of the total market capitalization of all stocks worth over one trillion.

BUA Foods Plc’s share price remained unchanged at the end of the trading week. Its market capitalization also remained at N1.05 trillion.