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The fantastic four companies that account for about 65% of NSE’s N20 trillion market capitalization

The combined market capitalization of DANGCEM, MTN, AIRTEL and BUACEMENT account for N13.17 trillion or 64.7% of NSE’s total market capitalization.



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The Nigerian Stock Exchange (NSE) has grown to become one of the largest stock exchanges in Africa, with about 168 listed companies and a market capitalization in excess of N20 trillion in recent times.

Despite being home to 168 listed companies, the total equity capitalization “market capitalization” of the NSE is dominated by four giants companies – Dangote Cement, Airtel, MTN Nigeria, and BUA Cement – which jointly accounts for about two-thirds of the total market value of the Nigerian bourse.

Data tracked on the NSE website revealed that these big four companies, as of the close of trading activities on NSE yesterday, 10th March 2020, have a combined market capitalization of about N13.17 trillion, which represents 64.7% of the total equity capitalization of the NSE.

READ: Four FMCG companies lost 15.2 billion in value in a single day

This indicates that the “fantastic four” companies are huge to the point of impacting the performance of NSE at any point in time, noting that a 10% change in the share price of any one of these companies will see NSE’s All-share-index increase/decrease by 1.25% or more (all else being the same).

In the same vein, the absence of Dangote Cement, Airtel, MTN Nigeria, and BUA Cement on NSE, noting that they jointly account for 64.7% of the total equity value, would see the market capitalization of the local bourse drop down to a meagre N7.2 trillion.

Hence, it is fair and logical to assert that the growth recorded in 2020 – the year NSE stormed the world to post a one year return of +50.3% as the best performing exchange in the world – was largely driven by the growth in the share price of these companies.

READ: Sell-off of shares by investors extend Flourmillers loss on NSE to N25 billion


Source: NSE, Nairalytics (As of 9th March 2021)

Dangote Cement Plc (DANGCEM)

Dangote Cement Plc is the largest listed company on NSE with a market capitalization of nearly N3.89 trillion, representing a total 19.07% contribution to the market capitalization of NSE.

The market capitalization of the leading cement manufacturer has increased from around N2 trillion in April 2020 to N3.89 trillion in recent time, adding approximately N1.89 trillion to the total equity capitalization of the local bourse in less than a year.

The cement giant’s revenue in the first nine months of 2020 rose 12% Y-o-Y to N761.4 billion, despite a challenging operating environment in the year 2020.

READ: Why Nigerian stocks are getting pummeled

The Group volumes for the nine months were up 6.6% and Group EBITDA (Earnings Before Interest Depreciation and amortization) was up 17.1%, at a 46.6% margin, at the back of a strong appetite for real estate investment and the recovery of infrastructure spending.

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Dangote Cement maintains the status of the leading cement producer in Africa, with a pan-African installed capacity of 48.6 million MTA across Africa, the company has a national installed capacity of 32.5 million MTA in Nigeria.

The company maintains operational footprint in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

READ: Best performing Nigerian stocks in 66 days

Airtel Africa Plc (AIRTELAFRI)

Airtel Africa is the largest telecommunications company on NSE, and the second most capitalized company on NSE with a market capitalization of N3.50 trillion, representing a total 17.16% contribution to the market capitalization of NSE.

The leading provider of telecommunications who recently gapped MTN to become the largest tech company listed on the exchange has seen it’s market capitalization surge by N300 billion this year alone.

The tech giant’s revenue at the end of Q3’21 grew by 13.8% Y-o-Y to $2.87 billion, driven by the growth across Airtel’s operating regions during the period, with revenue in Nigeria, East Africa, and Francophone Africa up by 21.6%, 23.4%, and 8.0% respectively.

However, an 11.3% increase in depreciation and amortization expenses coupled with a 41.4% increase in net finance costs pressured the group’s profit after tax down to $261 million, 21.1% lower than 2019 figures. ($331 million).

During this period, Airtel’s Customer base across all regions was up by 11.0% to 118.9 million, as it gained an additional 2.5 million customers in Q3’21.


MTN Nigeria Communications Plc (MTNN)

MTN Nigeria is Nigeria’s largest provider of communications services, connecting over 75 million people in various communities across the country, and maintaining leadership status since its launch in 2001.

The company’s market capitalization at the close of the market on the 9th of March 2021, stood at N3.26trillion, making it the third-largest company on NSE, with a total market capitalization contribution of 15.99%.

MTN service revenue at the end of 2020 surged by 14.7% to N1.3 trillion, making the telecommunication giant the first company to generate more than a trillion-naira revenue in an accounting period.

Its impressive performance for the year was driven by the growth in voice and data revenue, spiked by the increase in the demand for mobile connectivity, with its 4G internet coverage during the year increasing to 60.1% of the population from 43.8% in 2019.

During this period MTN’s mobile subscribers and active data users increased by 12.2 million and 7.4 million to 76.5 million and 32.6 million respectively.


BUA Cement Plc, a cement manufacturing company incorporated on May 30th, 2014 remains one of the fastest-growing companies in the country today.

BUA is the fourth-largest listed company on NSE with a market capitalization in excess of N2.53 trillion, representing a total 12.43% contribution to the market capitalization of NSE.

The cement tiger who is Nigeria’s second-largest cement company announced revenues of N209 billion in its unaudited 2020 Full Year results, this represents an increase of 19% from the corresponding period in 2019.

The company’s impressive performance in 2020 was driven by the resurgence of real estate investment and the recovery of infrastructure spending, this led to a 13% increase in sales volumes, up by about 600,000 tons to 5,100,232 tons in 2020.

In the same period, operating profits increased to N82.5billion whilst PAT rose to N70.5billion from N60.6billion in the corresponding year.

According to the information contained in BUA’s recent earnings statement, the company is expected to consolidate on its position as one of Nigeria’s most profitable companies, with the commissioning of new 3 million Metric Tonnes Sokoto Cement Plant this year.

This move, and the addition of 3 new lines of 9 million metric tonnes total capacity in Adamawa, Edo, and Sokoto States by 2023, are expected to expand BUA Cement’s total installed capacity to 20million metric tonnes per annum by 2023.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor.

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How rise in oil prices will impact exchange rate

Oil prices are currently inching closer to $70 per barrel as the positive outlook of a return to global economic recovery swells investor sentiments.



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Nigeria, Africa’s top oil producer and home to the second-largest reserves on the continent, is expected to benefit from the rise in oil prices in many ways.

Oil prices are currently inching closer to $70 per barrel as the positive outlook of a return to global economic recovery swells investor sentiments.

Historically, there has been a strong positive correlation between crude oil prices and the performance of the Nigerian economy. For example, when oil prices plummeted due to the COVID-19 outbreak and the implementation of lockdown protocols in 2020, the Nigerian government scaled down the budget to align better with the drop in crude oil price.

Now that there is a surge in oil price, we should expect that there would be an increase in government revenue translating to a stirring-up of aggregate demand.

READ: Nigeria records highest trade deficit since 1981

Why oil price is rising

The OPEC+ output restrains, despite the strong recovery of oil consumption, continues to give formidable fitting to bullish sentiments about soaring oil prices.

  • Oil prices are rising as optimism about a strong rebound in fuel demand in developed countries overshadows concerns of full lockdown to curb covid-19 in India.
  • Oil (BRENT) has seen a 34.3% increase Year to Date with the oil price at $69.34 showing an increase of +1.15% as of the time of writing this article.

What it means for the exchange rate

Perhaps the greatest benefit of the recent oil price rise is exchange rate stability. Since the crash in oil prices began in late 2019, Nigeria’s official currency has faced a barrage of sell pressure as local and foreign investors increase demand for the dollar.

This forced the central bank to curtain demand, implementing various forms of capital controls across the economy. With oil prices on the rise, Nigerians can begin to expect the following:

  • An increase in government revenue, which also means higher dollar earnings and thus increased FX reserves. Nigeria’s FX reserve reportedly stands at $34.7 billion as of Tuesday, May 4th, 2021. Soaring oil prices strengthen the exchange rate and promote economic growth. This effect trickles down to higher reserves held by the CBN meant for stabilization of the currency.
  • Higher oil prices could also mean a more stable economy thus propelling economic growth. This, in turn, attracts foreign investor dollars or at least retains what we already have and reduces the pressure on demand.
  • Nigerians have intensified diversifying their currency holdings, keeping less of naira and holding more dollars as they hedge against depreciation. This has kept the pressure on the exchange rate over the last one and a half years. This trend could reverse if oil prices continue their steady rise.

READ: Dangote: Cement price from our factories is between N2,450 and N2,510 per bag, VAT inclusive

The implication? The parallel market exchange rate might appreciate closer to the NAFEX rate if this trend continues.

Hence, it is safe to presume that as the world resume business and travel activities, the demand for Black Gold will continue to increase, and with supply held steady by OPEC+ we can speculate that this is enough catalyst to relieve the pressure of FX demand and increase our foreign reserves thereby propelling growth.

However, the inclusivity of this growth may still be in question.

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Billionaire Watch

Top 5 women who became billionaires after divorcing their husbands

The divorce of Bill and Melinda Gates is set to mint another woman billionaire.



Bill & Melinda Gates Foundation

The divorce of Bill and Melinda Gates is set to mint another woman billionaire. Yesterday, Nairametrics reported on the first set of transactions made by Bill Gates to his ex-wife, Melinda.

She was transferred securities worth over $1 billion, already making her a billionaire. With more transfers set to come, we want to look at 5 other women who became billionaires after divorcing their husbands.

5 .  Sue Ann Arnall ($1 billion  

Sue Ann Arnall was the wife of oil baron and CEO of Continental Resources, Mr Harold Hamm. The 26-year-old marriage ended in 2015 with a handwritten check of a whopping $974 million to Sue Ann, which she initially rejected on the basis that it was too small. After a series of back and forth in court, however, she finally accepted the cheque.

Before the cheque, Harold Hamm had initially paid her over $20 million, driving the total settlement figure over a billion dollars.

Harold Hamm is currently the 247th richest man in the world with a net worth of $8.6 billion.

READ: There are only 15 black billionaires in the world, here are the top 10

4.  Sue Gross ( $1.3 billion )

The ex-wife of Bill Gross, the billionaire founder of the investment management firm, PIMCO, walked away from her 32-year-old marriage to the business mogul with a handsome $1.3 billion dollars. She started her own charity afterwards.

Bill Gross is currently worth $1.5 billion according to Forbes. He founded PIMCO in 1971 and it became one of the most successful investment management firms in America.


READ: Squarespace founder is the latest billionaire, set to make $3bn from listing his company

3.  Elaine Wynn ( $2 billion ) 

Elaine Wynn is the ex-wife of Steve Wynn and she is a Co-Founder of the successful casino company, Wynn Resorts. After the couple divorced in 2012, she was transferred 11 million shares from the company which was valued at $795 million at the time.

Her ex-husband sold a substantial amount of shares later that year, which she also got a stake in. Today, her total shares from the Wyatt Resorts are worth over $2.3 billion according to Forbes.

READ: Is Donald Trump still a billionaire?

2.  Melinda Gates ($1.8 billion and counting) 

Melinda Gates is the latest billionaire divorcee on the block and she is already worth $1.8 billion after the first transfer of wealth. Her ex-husband, Bill Gates is the 4th richest man in the world. She will be worth over $60 billion if Bill Gates’ fortune is split evenly with her, although that is very unlikely.

1.  Mackenzie Scott ($57.7 billion) 

The ex-wife of the richest man in the world tops the list with a staggering $57.7 billion net worth. She met her ex-husband, Jeff Bezos when they both worked at a hedge fund in New York and she helped set up Amazon.

After her divorce from Bezos in 2019, she received 4% of Amazon shares which was valued at $35 billion then. Amazon stocks have witnessed a near 75% increase since then. She is currently worth $57.7 billion according to Forbes.

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What you should know 

Melinda Gates may top the list after the complete transfer of wealth by her ex-husband, Bill Gates.

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