Zenith Bank Emerges Most Capitalised Coy Print E-mail
Written by Amaka Ifeakandu, Lagos   
Monday, 12 April 2010 19:48

A research report on the ranking of quoted companies on the Nigerian Stock Exchange (NSE) in the first quarter of this year has named Zenith Bank Plc as the most capitalised organisation in the country.

International Corporate Research Stakes 55 quarterly said that Zenith, with its capitalisation, edged  out Nigerian Breweries and First Bank of Nigeria Plc which took the first and second position in the last quarter of 2009.

With a market value of N476.5 billion,  Zenith Bank led the Stakes 55 report,  followed by First Bank with a value of N475.4 billion, while Nigerian Breweries took third position with N465.1 billion, worth 16 per cent more than last quarter.

The  research report further showed that  GTbank, United Bank for Africa (UBA), and Dangote Sugar came fourth, fifth, and sixth with N394.7 billion, N327.6 billion, and N233.6  billion respectively.

Others on the top ten most capitalised companies include Guinness, N206.7 billion; Stanbic IBTC,  N205.5 billion; Access Bank, N184.4 billion; and Nestle.

This leaves the top ten companies unchanged but displacements were inevitable. Nestle fell from the eighth to the 10th position, lifting Stanbic IBTC Bank and Access Bank to eighth and nineth respectively. Dangote Sugar and Guinness also switched positions as the sugar manufacturer was N16.9 billion better to grab sixth place.

The report, however, pointed out that the top ten made up 57.6 per cent in value of the Stakes 55, compared to 56.9 per cent recorded last quarter and still maintain an above 50 per cent value of the total market capitalisation of 1st tier equities.

In the first quarter of this year the Stakes 55 welcomed another five new entrants, led by Nigerian Bag Manufacturing Company (43), IHS Nigeria (48), National Aviation Handling Company (53), Japaul Oil & Maritime Services (54) and the list is capped by embattled subsidiary of Bank PHB, Spring Bank Plc (55), which makes a return to the list, while African Alliance Insurance, Prestige Insurance, Investment and Allied Insurance, Unity Kapital and Continental Re were not good enough to make the list.

In numerical analysis the banking industry remains dominant, making up 34.5 per cent of the list, up by 1.8 per cent, followed by food and beverages with 16.4 percent, oil and gas firms recorded 11 per cent while building material manufacturers posted 7.3 per cent.

The insurance industry, according to the research, made a very poor showing this quarter, with just GT Assurance and Custodian & Allied Insurance on the list, compared to six recorded in the last quarter. IHS Nigeria joined Etranzact to increase information technology to two while the aviation and maritime sectors made first showings on the list.

Other sectors with at least one representation include telecom, pharmaceuticals, real estate and commercial services.

With an appreciation of N745 billion, the banking industry's dominance of the value of the Stakes 55 strengthened, further increasing from 50.9 per cent to 53.2 per cent. Food and beverages followed distantly with 12.9 per cent, while Nigerian Breweries and Guinness Plc, the only two brewery firms on the list, were enough to put the sector at 3rd by value worth 12.3 per cent of the Stakes 55. Building material contributed 6.28 per cent, while oil and gas and consumer products put in 4.9 per cent and 3.9 per cent respectively.

Meanwhile, the market capitalisation, which dropped to 4.08 per cent in the last quarter of 2009, gained 28.8 per cent in the quarter under review, rising from N4.23 trillion to N5.45 trillion. It said that the appreciable gains from the Top ten most capitalized equities helped to propel the Stakes 55 to its highest level since inception in the 3rd quarter of 2009. The value of the Stakes 55 makes up 90.2 per cent of the total market capitalisation of 1st tier equities, which now stands at N6.04 trillion.


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