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Zenith Bank has become the latest company to achieve a market capitalization surpassing one trillion naira, joining the prestigious group of stocks worth over one trillion (SWOOTs). This milestone was reached during the week, solidifying Zenith Bank’s position alongside other notable companies such as Airtel Africa, MTN Nigeria, Dangote Cement, BUA Foods, and BUA Cement.
With a 3.23% increase in its share price from the previous week, Zenith Bank closed at N32 per share, propelling its market capitalization beyond the trillion-naira mark to N1.004 trillion.
The combined market capitalization of the SWOOTs now stands at N21.560 trillion, compared to N20.617 trillion the previous week, indicating a positive growth trend.
Among the SWOOTs, BUA Cement, Dangote Cement, and Zenith Bank witnessed share price gains, while Airtel and MTN experienced negative returns. BUA Foods, on the other hand, maintained its share price stability from the previous week.
As the SWOOTs collectively account for 66.7% of the NGX Equity market capitalization, their performance significantly influences the overall direction and performance of the stock market.
Let’s take a closer look at the individual performance of each stock:
Zenith Bank:
Zenith Bank’s share price increased by 3.23% to N32 per share. This growth contributed to a market capitalization gain of N31.39 billion, resulting in a total market valuation of N1.004 trillion. Zenith Bank shares have exhibited strong performance, with a 48% increase over the past year, positioning it as one of the top performers in the banking sector. Notably, Zenith Bank is the sole financial institution among the current SWOOTs.
BUA Foods Plc:
BUA Foods’ share price remained unchanged at N135.75 per share, and its market capitalization stood at N2.44 trillion. In the unaudited financial statement for Q1 2023, BUA Foods reported a remarkable 60.2% growth in revenue, reaching N144.32 billion compared to N90.06 billion in Q1 2022. Profit after tax also experienced a significant rise of 77.1% to N40.47 billion, resulting in an earnings per share (EPS) growth of 77%.
BUA Cement Plc:
BUA Cement observed a 4.65% gain in its share price, closing at N90 per share. Consequently, its market capitalization increased to N3.05 trillion. According to the unaudited financial report for Q1 2023, BUA Cement recorded a revenue growth of 9.65% to N106.35 billion from N96.99 billion in the corresponding period of the previous year. However, the profit after tax witnessed a decline of 19.1% to N26.80 billion from N33.14 billion.
Dangote Cement Plc:
Dangote Cement’s share price rose by 1.23% to N287.5 per share. With a total market capitalization of N4.90 trillion, Dangote Cement remains the most capitalized cement producer on the NGX. The unaudited Q1 2023 financial result showed a slight decrease in revenue by -N6.46 billion (-1.56%) to N406.72 billion from N413.18 billion in Q1 2022. However, the profit after tax marginally increased by N3.65 billion (1.56%) to N109.50 billion.
Airtel Africa Plc:
Airtel Africa experienced a -1.72% decline in its share price, closing at N1266.8 per share. Consequently, its market capitalization decreased by N83.43 billion, reaching N4.76 trillion. Airtel Africa’s audited financial report for the financial year ending March 31, 2023, revealed a 20.3% year-on-year growth, with total services revenue amounting to N980 billion ($2.128 billion) compared to N864.9 billion ($1.878 billion) in the corresponding period last year.
MTN Nigeria Plc:
MTN Plc observed a -3.10% depreciation in its share price, closing at N265.50 per share. Its market capitalization decreased to N5.404 trillion, losing N173.01 billion from the previous week. In the unaudited financial report for Q1 2023, MTN recorded a 20.6% revenue growth to N568.14 billion from N470.98 billion in Q1 2022. The profit after tax also grew by 4.6% to N101.30 billion from N96.82 billion.
Key Takeaways:
The NGX All-Share Index and Market Capitalization concluded the week with a 0.34% appreciation, reaching 59,206.63 and N32.237 trillion, respectively. As the SWOOTs significantly contribute to over 66% of the entire NGX market capitalization, their performance continues to shape the growth trajectory of the exchange.
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