According to reports, investors in the Nigerian Exchange (NGX) Premium Board stocks have seen significant gains of N4 trillion in the first nine months of 2023, from January to September.
As of September 29, 2023, the capitalization of the NGX Premium Board stood at N15.609 trillion, accounting for 24.69 percent of the total market capitalization. This represented a N4 trillion increase from the N11.609 trillion it closed the year at. During the same period, the NGX Premium Board Index grew 43.67 percent, outperforming the NGX-All Share Index (ASI), which gained 29.52 percent over the same nine-month period.
Of the 156 companies listed on the NGX, only eight have achieved Premium Board status. These companies include Access Holdings, United Bank for Africa (UBA), Zenith Bank, FBN Holdings, Dangote Cement, Lafarge Africa (Wapco), Seplat Energy, and MTN Nigeria Communications (MTNN), all of which have performed well and declared impressive interim dividends this year.
The Premium Board, established on August 25, 2015, was designed to feature companies that meet the exchange’s strictest listing criteria regarding capitalization, governance, and liquidity. Its goal is to provide a platform for eligible African corporations to gain greater global visibility, attract global capital flows more easily, and reduce the cost of funding.
The performance of the Nigerian equities market in 2023 has continued the upward trend from 2022. Up to September 29, 2023, the NGX All-Share Index has achieved a year-to-date increase of 29.52 percent, driven by strong share price performances of large-cap stocks, increased demand for blue-chip companies such as Dangote Cement and MTNN, impressive earnings performance, dividend declarations, and policy reforms.
Analysts have pointed out that stocks on the Premium Board exhibit strong fundamentals and offer various investment opportunities for short-, medium-, and long-term positions. They recommend investors consider these fundamentally sound stocks.
The Chief Operating Officer of InvestData Consulting Limited, Mr. Ambrose Omordion, highlighted that the Premium Board has performed well, with the stocks listed on it driving the market index performance. These stocks have strong fundamentals and are favoured by foreign investors.
He further advised investors to put their money into sound companies and defensive stocks to safeguard their portfolios.
The strong performance of banks like UBA and Access Holdings has contributed to the Premium Board’s overall success. For instance, UBA announced impressive H1 2023 results and continued its growth and commitment to delivering value to shareholders. Access Holdings also declared an interim dividend and posted a substantial profit after tax.
Both institutions remain committed to driving growth and contributing to Africa’s development through strategic investments and financial services.
