The Nigerian stock market has experienced a bullish trend since the beginning of the year, witnessing significant capital gains for companies affiliated with some of Nigeria’s prominent entrepreneurs, including Tony Elumelu, Femi Otedola, and Jim Ovia, throughout the first quarter of 2024.
These companies are Zenith Bank, United Bank for Africa, FBN Holdings, Transnational Corporation of Nigeria, and Transcorp Hotels, which, alongside other firms, contributed to the impressive N59.13 trillion capital trade volume on the Nigerian Exchange Limited (NGX) in Q1, 2024.
Collectively, these companies, owned in part by the trio, saw their capital soar by N2.64 trillion on the NGX by the end of Q1, 2024.
While Otedola, Elumelu, and Ovia may not be the sole shareholders of their respective companies, their capital gains are intricately linked to the overall performance of the NGX.
Equities trading on the NGX concluded the first quarter of 2024 (January-March), showing noticeable shifts in purchasing behavior, resulting in the All-Share Index closing impressively at 104,562.06 index points by the quarter’s end.
Furthermore, the year-to-date (YTD) return of the NGX All-Share Index underscores its resilience, standing at an impressive 39.84%.
How each companies performed
Tony Elumelu
Tony Elumelu’s companies experienced significant growth, accumulating a total gain of N542.5 billion during the quarter.
- United Bank for Africa (UBA) saw a capital increase of N68.3 billion, reaching N957.5 billion by the end of the quarter, with its share price rising from N26 to N28.
- Additionally, Transcorp Hotel emerged as one of the top-performing stocks, witnessing a N283.9 billion increase and reaching a valuation of N1.2 trillion. Its share price opened at N70.18 and closed the quarter at N97.90.
- Similarly, Transnational Corporation gained N190.2 billion, with its market capitalization rising from N577.2 billion to N767.4 billion. The company’s share price increased from N9.5 to N14.20 throughout the quarter.
Femi Otedola
Companies led by Femi Otedola, one the prominent Nigerian oil magnates, witnessed remarkable capital gains totaling N1.92 trillion, marking the highest increase among companies associated with the trio.
- Geregu Power, one of his investments, experienced a remarkable surge in its share price by 150.6% during Q1 2024. Its stock price rose from N399.00 to N1000.00 per share, reaching unprecedented levels. This surge propelled Geregu Power’s market capitalization, soaring from N997.5 billion to N2.5 trillion by the end of Q1 2024.
- Also, FBN Holdings, another company in which Otedola has interests, recorded an increase of N427.15 billion. The company’s share price started at N23.65 and closed at N35.55 by the end of the quarter, translating to a growth in market capitalization from N848.9 billion to N1.27 trillion
Jim Ovia
Zenith Bank observed a market capitalization surge of N172.6 billion, reaching a valuation of N1.39 trillion.
- The bank began the year with a share price of N39, which rose to N44.5 by the end of the quarter.
