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The combined market capitalization of the largest and most liquid companies is more than the GDP of 8 African countries.
The combined market capitalization of BUA Cement, Airtel Africa, Dangote Cement, MTN Nigeria, and Nestle Nigeria stood at N8.03 trillion ($22 billion) as at 2:00 pm in Lagos.
That compares with the GDP of Sao Tome and Principe, ($477 million), Comoros, ($726 million0); Guinea Bissau, ($1.53 billion), Seychelles, ($1.65 billion); The Gambia, ($1.74 billion); Cape Verde, ($2.04 billion); Central African Republic, ($2.28 billion), and Djibouti, ($2.39 billion).
The market cap of BADMN, the acronym for the five largest bellwether firms, make up 60 percent of the Nigerian Stock Exchange (NSE).
The NSE All Share Index (ASI) has shed -2.66 percent this year, as investors continue to dump shares on the back of lack of transformation policy on the part of government and bleak economic outlook
Also, the negative impact of the coronavirus on crude oil price and the recent downgrade of the country’s debt status by ratings bodies have cast a pall on future economic growth.
The S and P rating agency has downgraded Nigeria from a stable outlook to negative.
It is double whammy for the country as the downgrade could worsen the situation of the capital market, which relies heavily on foreign direct inflows to boost demand and prices.
Foreign exchange reserve levels have fallen from $45 billion at mid-year 2019 to $38 billion at end-2019 and $36.50 billion in February 2020.
BALA AUGIE
