Investors’ On NGX Premium Board Stocks Gain N4trn In 9 Months

Investors’ in the Nigerian Exchange (NGX) Premium Board stocks gained N4 trillion in nine months, from January to September 2023, LEADERSHIP has learnt.

The NGX Premium Board capitalisation as at September 29, 2023 stood at N15.609 trillion, controlling 24.69 per cent of the total market capitalisation. It gained N4 trillion as against N11.609 it closed trading for the year. Also, the NGX Premium Board Index during the period under review, grew by 43.67per cent to outperformed the NGX-All Share Index (ASI), which gained by 29.52 per cent in nine months.

Out of 156 companies listed on NGX, only eight companies; Access Holdings, United Bank for Africa (UBA), Zenith Bank, FBN Holdings, Dangote Cement, Lafarge Africa (Wapco), Seplat Energy and MTN Nigeria Communications (MTNN) are on the premium board.

All the companies listed on the sector have performed well and declared impressive interim dividends in the year.

The Premium Board, which was launched on August 25, 2015 was meant to feature companies that meet the exchange’s most stringent listing criteria of capitalisation, governance and liquidity.  It aims at providing a platform for greater global visibility for eligible African corporations to make it easier for them to attract global capital flows and reduce the cost of funding.

The Nigerian equities market performance in 2023 has maintained the uptrend momentum from 2022. So far this year, as at September 29, 2023 the NGX All-Share Index has a year-to-date of 29.52 per cent, driven by strong share price performances of large-cap stocks, strong demand for blue-chip, such as Dangote Cement and MTNN, impressive earnings performance as well as dividend declarations and policy reforms.

Analysts stated that stocks on the Premium Board are fundamentally sound with loads of investment opportunities for short-, medium- and long-term positions, advising investors to take positions in fundamentally sound stocks.

The chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said that the Premium board has performance well and the stocks listed on the platform drive market index performance, saying that stocks listed on the board have sound and good fundamentals and also foreign investors’ choice.

Omordion stated that, “these are stocks that investors should buy due to their price appreciation on the floor of NGX and their consistent dividend declaration.”

He advised that investors should invest in sound companies and defensive stocks to protect their portfolios.

Speaking on UBA performance in H1, 2023, Group managing director and chief executive of UBA, Mr. Oliver Alawuba said, the exceptional performance underscored the Group’s commitment to consistently deliver value to its shareholders.

He added that the Group made progress in digital payments, retail penetration and also benefited from the effect of revaluation gains arising from the harmonisation of foreign exchange rates at the different access windows in Nigeria.

He stated that, “Our business is on a steady growth trajectory, as we further strengthen our risk management traditions and practice necessary technology investments to deliver premium service to our customers. We have also continued to finance landmark projects in critical sectors of the economies across Africa, facilitating intra-Africa trade with our valuable offerings and providing a versatile last-mile distribution network for Africa-bound donor and multilateral agency funds.”

Access Holdings recently announced an interim dividend of 30 kobo, even as the bank posted profit after tax of N135.44 billion in its half year operations, against N88.74 billion achieved in the corresponding period in 2023.

Group chief executive officer of the Holding Company, Herbert Wigwe said: “our growth plans for the African continent remain firm and clear, driven by the strong long term growth prospects and trade opportunities seen across many of the countries.

“Continuing with our five-year cyclical strategy, our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity` among all stakeholders,” Wigwe added.