The top 30 companies listed on the Nigerian Stock Exchange (NSE) known as the NSE-30 have lost a total of N1.13 trillion in market capitalization year to date.
The elite list, which consists of the top 30 companies in terms of market capitalization and liquidity, recorded a decline of 6.66% in market capitalisation from N17.00 trillion recorded as of 31st December 2020 to stand at N15.87 trillion as of 12th March 2021.
According to data obtained from the Nigerian Stock Exchange, the NSE-30 companies currently account for 78.47% of the total market capitalization (N20.22 trillion).
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Meanwhile, only 8 companies recorded positive growth year to date, while others recorded a decline in the review period, with exception of 11 Plc (formerly Mobil), which maintained its initial value.
The gainers in the period under review include Seplat (+34.23%), Guinness (+23.68%), Flour Mills (+14.23%) while the highest losers are Sterling Bank (-24.51%), UBA (-17.34%), and Ecobank Transnational Incorporation (-14.17%).
Top losers
Sterling Bank Plc, lost a total of N14.39 billion between December 31st, 2020 and 12th March 2021.
- The loss represents a decline of 24.52% to stand at N44.34 billion from an initial market capitalisation of N58.73 billion.
- According to the unaudited financial report for the year 2020, Sterling Bank grew its profit after tax by 10.3%, posting a profit of N11.69 billion in 2020.
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United Bank for Africa, also recorded a decline of 24.51% in market capitalization year to date to stand at N244.53 billion as of 12th March 2021.
- Investors of the banking giant lost a total of N51.3 billion in the period under review.
- Meanwhile, UBA posted a profit after tax of N113.8 billion in 2020 according to the audited full-year report for the year 2020.
- The profit after tax posted in 2020, represents a 27.7% increase compared to N89.1 billion recorded in the previous year.
Ecobank Transnational Incorporation followed closely with a decline in market capitalisation by 14.17% in the review period.
- A total of N15.6 billion was lost by investors of the banking giant between December 31st, 2020 and March 12, 2021.
- Ecobank also posted a decline in profit for the year 2020, recording a year-on-year decline of 64% to stand at N35.9 billion compared to N99.46 billion recorded in 2019.
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Top gainers
Seplat Petroleum Development Company Plc gained the highest in the period under review as the stock price grew by 34.23% from N402.3 recorded on the last trading day of 2020 to N540 as of 12 March 2021, leaving its total market capitalisation at N317.8 billion.
- The company’s shares grew by double figures despite the N30.71 billion loss recorded in its 2020 financial year.
- Although the reason for this increase cannot be exactly established, it can be associated with the recovery of oil prices to pre-pandemic levels.
- Seplat also successfully raised US$260 million in debt to fund the completion of its ANOH Gas Processing Plant (“ANOH”). It is expected that this plant will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
Guinness Nigeria Plc, gained a total N9.86 billion between the period under review, representing an increase of 23.68%.
- The company’s market capitalisation increased from N41.62 billion recorded as of December 31st, 2020 to N51.47 billion as of 12th March 2021.
- Guinness recorded impressive growth in the Stock market despite the N317.42 million loss the Group posted in its Q2 2020 results released on 28 January 2021.
Flour Mills Nigeria Plc, followed with a gain of 14.23% to stand at N121.78 billion as of March 12th, 2021.
- Investors of Flour Mills gained a total of N15.17 billion in the period under review from N106.61 billion recorded as of the end of 2020.
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Bottom line
The decline in the stock value of the elite companies could be attributed to sell-offs recorded generally in the Nigerian Stock Exchange, evident in the year-to-date decline of the All-Share index (4.03%), while the NSE-30 index has also dipped by 6.37% in the review period.
