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Home Investor Investor Companies market cap. claims: Clue from stakes 55 largest companies in Nigeria

Companies market cap. claims: Clue from stakes 55 largest companies in Nigeria

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It is not uncommon to hear multiple companies claim to be the market leader in an industry. It is not also uncommon to find more than one organization laying claim to being the biggest or one of the top 3, 5 or ten in its sector of operation.

What many of these self ascribed ratings fail to do however is state in explicit terms the criterion adopted in measuring and comparison that form the basis for their assertions. All over the world the risk of misappropriating glory is been daily reduced as many different ratings and ranking each based on specific set of variables are prepared and published to serve as measurable standards for corporate comparisons.

In this light, Stakes 55 was conceived to provide a ranking comparison of companies listed on the Nigerian stock exchange. Such ranking comparison as this, the world over, has become an invaluable source of information for decision makers (investors and fund managers), researchers, journalists and even in corporate visioning. International Corporate Research has released The stakes 55 largest companies in Nigeria measured by market capitalization for the 4th quarter of 2009.

The Stakes 55 is a quarterly release of the largest companies in Nigeria ranked by market capitalization. It profiles the current situation and most recent happenings in the companies that appear on each list. Apart from these the position on the ranking, market capitalisation at the date of review, the corporate information (Head office address, board of directors, company auditors and company registrars) of each company are displayed. The company’s logo is also shown.

In this release, food and beverage companies increased presence on the list from 6 last quarter to 9 this quarter. The listing of Honeywell flour on the floor of he exchange and the entry into the top 55 of Dangote flour and the National Salt Company made this sector second most dominant by number but could only manage third place by value.

Despite huge depreciation of banking stocks, the banking sector still dominated the list in both number and value. 18 banks worth N2.15 billion represent 32.7 percent by number and 50.9 percent by value of the list respectively. Two brewery companies Nigerian Breweries and Guinness Nigeria were enough to make the sector second place by value. There were only slight changes at the top as the top ten remained considerably the same except for minor displacements. Access bank entered the top ten which is still held strongly by six banks; First bank plc, Zenith bank plc, GTbank plc, United Bank for Africa plc, Stanbic IBTC bank plc and Access bank plc.

“The quarter-four 2009, the Stakes 55 lost N 179,991,577,486 billion a 4.08 percent drop from N4.41 trillion to N4.23trillion in value. The value of the s55 stood at 89.5 percent of the total market capitalisation of 1st tier equities listed on the Nigerian Stock Exchange as at 31st December 2009. The gold club (the top 10 ranked) fell 3.75 percent to N2.4 trillion from N2.5 trillion last quarter. The Stakes 55 is still led by Nigerian breweries plc with a value of N400.9 billion followed by First bank plc and Zenith bank plc with N347.3 billion and N341.6 billion respectively. GT bank plc (N292.7billion) is fourth while United Bank for Africa plc (N232.7billion) is fifth. The 6th to 10 positions are occupied by Guinness (N188bn), Dangote Sugar (N181.2bn), Nestle (N158.2billion), Stanbic IBTC bank plc (N140bn) and Access bank (N125bn) in order.

According to the review, the top nine positions are unchanged but GT bank moved up 1 place to push UBA to 5th position. Ecobank’s exit from the top ten moved Nestle Nigeria and Stanbic IBTC bank up to 8th and 9th positions respectively.

Access bank plc gained 3 places to join this quarter’s gold club of top ten most capitalised companies in Nigeria. Though Ecobank dropped off the top ten list, Access bank was good enough to ensure the dominance of the gold club by the banking industry as 6 banks were part of the top ten, same as last quarter.

At the end of the quarter 5 companies (Wema bank, Spring bank, Oasis insurance, Okomu oil palm plc and Staco insurance) dropped off the list and were replaced by new entrants led by newly listed Honeywell flour (21), GT Assurance (38), and Unity Kapital insurance (21). The list of new entrants is completed by Dangote flour and the National Salt Company which was N651.6 million better than last quarter’s 52nd place Okomu oil to cap the list at 55th position. This quarter’s Stakes 55 is 32.7 percent made up of banks, 16.36 percent food and beverage producers and 11 percent insurance and 11 percent oil & gas players. Other sectors represented include manufacturing, breweries, telecoms, real estate and construction.

Meanwhile the top ten with a combined capitalization of N2.4trn represent 56.9 percent of the Stakes 55 and 51 percent of total capitalization of 1st tier equities.

Despite huge depreciation in the price of banking stocks, the banking sector still maintained huge dominance with 50.9 percent, breweries 13.9percent, food & beverage 11.58 percent, oil & gas 5.8 percent cement manufacturers, 5.87 percent and insurance 2.5 percent of the Stakes 55.


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