Newsfront Online …Telling the Public as it is
…As Transcorp, Chams, others surpass 700% returns in 2023
Listed Telecommunications giants led the pack of most capitalised stocks on the Nigerian Exchange Limited (NGX) in 2023. Topmost on the list is Airtel Africa with listed stocks valuation at N7.09 trillion as of the end of 2023.
It was followed by MTN Nigeria (N5.54 trillion), and Dangote Cement (N5.45 trillion). This is as Transport Hotels Plc, Chams Holding Company Plc and CWG Plc as the three companies topped the gainers chart on the NGX gaining over 700 per cent in capital appreciation in 2023
BUA Foods closed the year with N3.48 trillion in capitalisation, followed by its sister company BUA Cement (N3.28 trillion). Seplat Energy’s listed equities valuation was N1.36 trillion in 2023, Zenith Bank (N1.21 trillion), GT HoldCo (N1.19 trillion), and Geregu Power (N997.5billion).
Stanbic IBTC closed 2023 with a stock valuation of N902.5billion, UBA Plc (N877.2 billion), and Nestle Nigeria (N871.9 billion). The NGX market concluded the year on a positive note, gaining 45.90 percent. This upswing is commonly referred to as the “post-inauguration rally,” CardinalStone Research analysts said in a recent note.
The analysts noted that the fourth quarter (Q4) 2023 recorded the highest quarterly return, surging by 12.60percent following positive earnings releases. The second quarter (Q2) 2023 came in second, with an 11.1percent gain, aided by the exchange rate unification and subsidy removal announcement in May.
Transcorp Hotels posted the highest capital appreciation as the share price jumped from N6.25 in the beginning of 2023 to close at N70.18 on the last trading day of 2023, an increase of 1022.9 per cent. Its market capitalization rose to N718.8 billion at the last trading day of 2023.
Chams Holdings sustained its stellar performance in 2023 as the frontline financial technology company’s share price rose by 795.5 per cent from 24 kobo at the beginning of 2023 to close at N1.97. Chams’ fundamentals are waxing stronger with a gross profit of N1.84 billion in nine months in 2023, a year-on-year growth of 181.3 per cent from the corresponding period in 2022.
In a recent media interview, the group managing director of Chams, Mrs Mayowa Olaniyan, attributed the performance to the gains from the on-going transformation in the entire group which comprises ChamsSwitch, ChamsAccess, CardCentre, and ChamsMobile, its subsidiaries. The third best price gainer in the review period was CWG Plc. From 92 kobo at the start of 2023, the share price hit N3.96 per unit at the end of the trading day, an increase of 721.8 per cent.
Apart from being a leading provider of Information and Communication Technology (ICT) across West, Central and Eastern Africa, the company is also a leading cloud service provider that enables Africa’s SMEs to exploit cloud services for commerce and management.
Other companies that made the league of the top ten were: Transnational Corporation (Transcorp), 676.4 per cent; MRS Oil, 644.7 per cent; Northern Nigeria Flour Mills (NNFM), 639.8 per cent; Japaul Gold and Ventures, 507.1 per cent; Ikeja Hotels, 571.4 per cent; FTN Cocoa Processing, 410.3 per cent and Infinity Trust Mortgage Bank, 372.44 per cent.
Despite the headwinds that characterised the business environment in 2023, NGX All-Share Index, a measure of capital gains, was up by 45.9 per cent to close at an all-time high of 74, 773. 77 points while the market capitalization closed the year 2023 at N40.92 trillion.
