The listing of Dangote Cement Plc on the Nigerian Stock Exchange (NSE) in the month of October was largely attributed to the increase in market capitalisation.
During the month, the market value of the 261 listed securities closed at N10.1trillion, up by 29.73 per cent from N7.8 trillion in September. Market capitalisation dropped by 2.7 per cent in September.
The increase in market capitalisation in October can be attributed largely to the listing of Dangote Cement Plc in the building materials sub-sector. Other factors included the listing of Kaduna State bond and the increases in equity prices.
18 sub-sectors recorded increased market capitalisation of between 0.1 per cent and 414.8 per cent while 11 sub-sectors suffered reduction in market capitalisation of between 0.1 per cent and 8.3 per cent. Six sub-sectors did not record any change in market capitalisation.
However, in the preceding month, seven sub-sectors recorded increased market capitalisation of between 0.01 per cent and 9.76 per cent while 24 sub-sectors suffered reduction in market capitalisation of between 0.11 per cent and 26 per cent. Four sub-sectors did not record any change in market capitalisation. The stock market recorded a 10-month growth rate of 55.4 per cent (monthly average of 5.54 per cent) and 40.8 per cent (monthly average of 4.1 per cent) in equity market capitalisation and aggregate market capitalisation, respectively.
During the month, all the equity sub-sectors except the building materials sub-sector lost market share. The building materials sub-sector, following the listing of Dangote Cement Plc increased its market capitalisation by 415 per cent and market share from 8 per cent to 29 per cent. The top five leading equity sub-sector recorded market capitalisation of N6.9 trillion or 86.3 sub-sector of the equity market, up by 49.53 sub-sector from the N4.61 trillion recorded in September.