Airtel Africa reports robust revenue growth, MTN Nigeria gains market share, and BUA Cement declines in the SWOOTs Market Update.
Notable Highlights:
- MTN Nigeria’s share price rises by 1.53% as it retains its position as the most valued company on the NGX.
- BUA Cement experiences a -2.22% share price decline, while BUA Foods remains stable.
- Airtel Africa records a significant 20.3% year-on-year revenue growth, and Dangote Cement reports marginal revenue loss.
MTN Nigeria Plc: Market Leader
MTN Nigeria, the leading telecom giant, witnessed a positive share price movement, rising by 1.53% to N232.5 per share. With a market capitalization of N4.73 trillion, MTN Nigeria maintains its position as the most valued company on the NGX. In its unaudited Q1 2023 financial report, the company showcased a remarkable 20.6% revenue growth, amounting to N568.14 billion. Additionally, the Profit After Tax increased by 4.6% to N101.30 billion compared to Q1 2022.
BUA Cement Plc: Share Price Decline
BUA Cement Plc faced a -2.22% share price decline, closing at N88 per share, resulting in a market capitalization of N2.98 trillion. The company’s unaudited Q1 2023 financial report displayed a revenue growth of 9.65%, amounting to N106.35 billion compared to the previous year. However, Profit After Tax experienced a -19.1% decline, reaching N26.80 billion, and Earnings Per Share fell by -19.39% to N0.79.
BUA Foods Plc: Stable Performance
BUA Foods Plc maintained a stable share price, closing at N117 per share, with an unchanged market capitalization of N2.11 trillion. The unaudited Q1 2023 financial statement showcased impressive growth, with revenue increasing by 60.2% to N144.32 billion compared to Q1 2022. Profit After Tax surged by 77.1% to N40.47 billion, and Earnings Per Share grew to N2.25, a 77% increase from Q1 2022.
Airtel Africa Plc: Strong Revenue Growth
Airtel Africa Plc’s share price remained steady at N1175 per share, while the market capitalization stood at N4.41 trillion. The audited financial report for the financial year ending March 31, 2023, revealed substantial revenue growth of 20.3%, totaling N980 billion ($2.128 billion) compared to the previous year’s N864.9 billion ($1.878 billion).
Dangote Cement Plc: Marginal Revenue Loss
Dangote Cement Plc maintained a stable share price at N270 per share, with a total market capitalization of N4.60 trillion. The unaudited Q1 2023 financial results showed a marginal revenue loss of -N6.46 billion (-1.56%) compared to Q1 2022, amounting to N406.72 billion. However, the Profit After Tax marginally increased by N3.65 billion (1.56%) to N109.50 billion.
Overall NGX Performance
The NGX All-Share Index and Market Capitalization closed the week with a 1.51% appreciation, reaching 52,973.88 and N28.845 trillion, respectively. The SWOOTs, which represent stocks worth over one trillion, contributed significantly to the NGX’s growth, accounting for over 60% of the exchange. Their combined market valuation reached N18.835 trillion, reflecting a marginal increase of +0.02% from the previous week’s N18.832 trillion. This signifies a slight gain of N3.512 billion.
Market Dynamics:
While MTN Nigeria experienced positive momentum, BUA Cement closed with a decline in share price. Other SWOOTs, including Airtel Africa, BUA Foods, and Dangote Cement, remained stable.
Importance of SWOOTs:
The SWOOTs hold significant influence over the NGX, constituting over 60% of the exchange’s total value. As a result, the performance of these stocks plays a crucial role in driving the growth or contraction of the market.
Key Takeaways
- MTN Nigeria’s strong performance, both in share price and financial results, solidifies its position as the most valued company on the NGX.
- BUA Cement faced a decline in share price, impacting its market capitalization.
- Airtel Africa recorded substantial revenue growth, highlighting its robust performance in the telecommunications sector.
- Dangote Cement experienced a marginal revenue loss but maintained a stable share price.
The overall market performance of the NGX demonstrated positive growth, as reflected by the appreciation in the All-Share Index and Market Capitalization. The continued performance and stability of the SWOOTs contribute to the market’s resilience and investor confidence.
