Emmanuel OchayiIn a robust year for the Nigerian Exchange Limited (NGX), the addition of three new equities has played a role, contributing N179 billion to the exchange’s market capitalization.
This surge marks a moment, with the NGX achieving its best performance since 2020, boasting a 41% year-to-date return.
The three standout entities—Chapel Hill Denham’s Nigerian Infrastructure Debt Fund, Mecure Industries Plc, and VFD Group Plc—joined the NGX roster in 2023, each leaving a distinct mark on the market landscape.
Notably, these additions propelled the NGX’s all-share index beyond the 72,000 mark, setting new records as the market cap surged above N39 trillion.
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However, amidst the triumph of new listings, a shift in dynamics emerged with Ardova Petroleum’s delisting in July 2023. This heralded a trend as GSK Consumer Nigeria Plc and PZ Cussons Nigeria gear toward their anticipated delisting in early 2024.
CEO Temi Popoola, speaking at the MTN Capital Markets Day in November 2023, highlighted the impact of recent listings on the NGX’s market cap.
He underscored that over the past two years, new listings have contributed, reflecting a 10% increase in market capitalization.
Looking back, the NGX witnessed a flurry of activities in the past two years with a blend of arrivals and exits.
BUA Foods Plc, Geregu Power Plc, VFD Group Plc, Mecure Industries Plc, and the Nigeria Infrastructure Debt Fund made their mark through listings, while Ardova Petroleum, Studio Press Petroleum, and Union Diagnostic & Clinical Services exited the NGX within the same timeframe.
The ebb and flow of listings and delistings underscore the evolving landscape of Nigeria’s stock exchange, signaling both growth opportunities and strategic shifts in the market’s composition.
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