Ten companies, led by Dangote Cement Plc, accounted for 77.2 per cent of the total market capitalisation of the equities listed on the Nigerian Stock Exchange, NSE.
The 10 leading companies’ market capitalisation stood at N10.15 trillion, representing about 77.2 per cent of the total market capitalisation which stood at N13.14 trillion. Market capitalisation refers to the total worth of investments in the 169 equities listed on the NSE.
Analysis of the 10 companies shows that Dangote Cement Plc has the highest capitalisation of N3.1trillion, accounting for 30.6 per cent of the top 10 most capitalised companies. The newly listed MTN Nigeria Communications Plc occupied the second position with N2.71 trillion, accounting for 26.7 per cent of the top 10 markets. Nestle Nigeria Plc occupied the third position with N1.2trillion, accounting for 11.1 per cent of the top 10 in market capitalisation.
On the significance of this market structure, stock market operators said: “These dominant stocks, most of the time, determine the direction of the entire market because of their level of market capitalisation, noting that they are often referred to as bellwethers. Investors are always attracted to the stocks because they pay dividend regularly.”
Five of the companies have already paid a dividend for the year ended December 31, 2018.