After more than six months, Airtel Africa Plc has regained its position as the most valuable company on the Nigerian stock market. With a surge in market capitalization by N530 billion to N5.79 trillion, Airtel Africa surpassed Dangote Cement Plc to reclaim the top spot. This shift is attributed to a notable increase in Airtel Africa’s share price, making it the leading gainer in the market.
Key Points:
- Market Capitalization Surge:
- Airtel Africa’s market capitalization increased by N530 billion, reaching N5.79 trillion, enabling it to surpass Dangote Cement Plc, which has a valuation of N5.59 trillion.
- Share Price Performance:
- Airtel Africa’s share price experienced a significant surge, jumping by 10 percent to N1,540, demonstrating its strong performance in the market.
- Reasons Behind Airtel’s Performance:
- The company reported a loss after tax of $13 million for the half year ended Sept. 30, 2023. This loss was primarily attributed to a foreign exchange loss of $471 million recorded in finance costs before tax and $317 million after tax due to the devaluation of the Nigerian naira in June 2023.
- MTN Nigeria’s Position:
- MTN Nigeria Communications Plc secured the third spot as the most valuable company, with a market value of N5.16 trillion and a share price of N246.
- Previous Ranking Changes:
- In April 2023, MTN Nigeria overtook Airtel Africa as the most valuable company. At that time, Airtel Africa’s market cap had fallen to N4.50 trillion, while MTN Nigeria’s valuation stood at N4.86 trillion. Dangote Cement held the second position with a valuation of N4.60 trillion.
Conclusion: Airtel Africa’s resurgence as the most valuable company on the Nigerian stock market reflects its strong performance and market resilience. The surge in market capitalization and share price attests to the company’s strategic position in the telecommunications sector. This development highlights the dynamic nature of the Nigerian stock market and the competitive landscape among major corporations.
