Nigeria Stock Market Report for Q1 2023
The Nigerian equities market has experienced impressive growth in the first quarter of 2023, with Airtel Africa and MTN Nigeria emerging as the most valuable quoted companies in the country. According to data from the Nigerian Exchange (NGX), Airtel Africa's market capitalization is N5.56 trillion, while MTN Nigeria's is N4.89 trillion, which accounts for 35.4% of the total market.
The growth in the telecom sector is not surprising, given the increased use of internet services across Nigeria after the COVID-19 pandemic. In February 2023, the Nigerian Communications Commission (NCC) reported that the total number of GSM internet subscribers rose to 156.4 million, compared to 125.7 million at the end of 2019. MTN Nigeria and Airtel Africa have both recorded impressive financial numbers, with MTN Nigeria reporting revenue of N2.01 trillion in 2022, and Airtel Africa recording a 12.1% year-over-year revenue increase for the nine months ended December 2022.
In terms of market performance, the Nigerian stock market rallied by 5.82% in Q1 2023, building on the gains recorded in the previous year (2022: 19.98%). The All-Share Index opened the year at 51,251.06 basis points and closed the quarter at 54,232.34 points, while the market capitalization gained N1.63 trillion to close the quarter at N29.54 trillion.
In Q1 2023, MTN Nigeria surpassed Dangote Cement as the second most capitalized company in the Nigerian equities market. MTN Nigeria recorded an 11.6% growth to stand at N4.89 trillion by the end of March 2023, surpassing the 3.4% growth recorded in the share value of Dangote Cement.
The top ten most valuable companies on the NGX, which include Airtel Africa, MTN Nigeria, Dangote Cement, and BUA Foods, accounted for approximately 82% of the total market value, with a combined valuation of N24.09 trillion.
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In terms of the biggest gainers, Tripple Gee and Company, International Energy Insurance, and Neimeth International recorded the highest percentage increase in market value, while BUA Foods, MTN Nigeria, and Dangote Cement recorded the highest absolute increase in market value.
Overall, the first quarter of 2023 has been a positive one for the Nigerian equities market, with the telecom sector leading the way in terms of market capitalization.