DANGOTE Cement, Airtel Africa, MTN Nigeria Communications (MTN), and nine other stocks hit 78.6 per cent of the Nigerian stock exchange’s total market capitalisation as of the close of trading on Friday, January 19, findings by The ICIR have shown.

The other companies are BUA Cement, BUA Foods, Seplat Petroleum, Zenith Bank, Guaranty Trust Holding Company (GTCO), Geregu Power, Access Holdings, United Bank for Africa (UBA), and Transcorp Hotels.

The ICIR findings further showed a total market capitalisation of N51.74 trillion when the equities market closed on Friday, and the 12 companies’ stocks stood at N40.66 trillion.

The 12 companies are in the league of those that have crossed the N1 trillion market capitalisation mark and have sustained the position of the 121 companies trading on the floor of the Nigerian Exchange Limited (NGX) as of the end of trading on Friday.

A cursory look at the trading figures shows that Dangote Cement has a market capitalisation of N9.18 trillion, Airtel Africa, N7.52 trillion; MTN, N6.09 trillion; BUA Cement, N5.03 trillion; and BUA Foods at N4.32 trillion as of the close of trading on Friday.

Others, Seplat Petroleum, has a market capitalisation of N1.495 trillion; Zenith Bank, N1.41 trillion; GTCO, N1.297 trillion; Geregu Power, N1.17 trillion; Access Bank, N1.07 trillion; UBA, N1.06 trillion; and Transcorp Hotels, N1.02 trillion respectively.

“The fact that 12 equities out of 121 companies account for 78 per cent of market capitalisation is an indication that there is the prospect for other equities and opportunities to arise in the near future.

“As investors, we anticipate that once the issues of forex (foreign exchange) are addressed along with the high cost of doing business, more equities will join the trillion mark as investors will go after them,” the National President of New Dimension Shareholders, Patrick Ajudua, told The ICIR.

Investors in the capital market are thrilled by the positive trend the market has witnessed, Ajudua maintained.

“It’s an attestation of investors’ confidence in the market resulting in all share index crossing the 90,000 mark with market capitalisation crossing the N50 trillion mark.”

At the close of the week trading on Friday, the all-share Index rose by 13.84 per cent to close at 94,538.12 basis points; investors gained N6.29 trillion as market capitalisation increased to N51.74 trillion even as the year-to-date return strengthened to 26.43 per cent.

In their weekly report, analysts at Cowry Asset Management said the current movement pattern indicates that the market is persistently in the overbought region, with stock valuations and prices significantly exceeding intrinsic values.

“This signals a potential imminent pullback, suggesting the market requires a correction in the short term.

“Anticipated market dynamics for the upcoming week include a mix of sentiments, profit-taking activities, and the ongoing presence of bargain hunters, all unfolding against the backdrop of expectations for unaudited quarter four 2023 financial results,” the analysts said.

According to the analysts, investors are gearing up for heightened volatility, especially with the Central Bank of Nigeria shifting its monetary policy committee (MPC) meeting to February, and they will closely monitor these factors for potential shifts in market conditions.

“Amidst all these, we continue to advise investors to take a position in stocks with consistent track records of dividend payments and strong fundamentals and growth prospects to support earnings growth,” they added.