A total of 25 listed companies on Nigerian Exchange Limited (NGX), led by MTN Nigeria Communications Plc, accounted for 89.96 per cent of the bourse’s total market capitalisation as of April 30, 2026, underlining the growing dominance of blue-chip stocks in the ongoing equity market rally.

Data compiled by THISDAY showed that the 25 firms jointly contributed N140.34 trillion to the NGX’s total market capitalisation of N155.99 trillion in the first four months of the year, as sustained bullish run in equities continued to deepen market concentration around the exchange’s largest and most liquid counters.

The Nigerian stock market has gained significant momentum in 2026, buoyed by improving macroeconomic indicators, policy reforms, and stronger-than-expected corporate earnings, with total market capitalisation expanding by N56.6 trillion between January and April.

At the forefront of the rally is MTN Nigeria, which emerged as the most capitalised stock on the exchange after its market value surged to N19.21 trillion at the close of trading in April. The telecoms giant’s share price climbed from N511 at the end of 2025 to N915 per share by April 30, representing a 79.06 per cent appreciation and lifting its valuation from N10.73 trillion.

The rally followed a dramatic earnings turnaround by the telecom operator, which posted N1.7 trillion profit before tax in 2025, reversing a N550.3 billion loss recorded in 2024, while revenue rose nearly 55 per cent to N5.2 trillion from N3.36 trillion.

Trailing MTN Nigeria on the market capitalisation ranking is BUA Foods Plc, valued at N17.41 trillion, followed by Dangote Cement Plc at N16.37 trillion and BUA Cement Plc at N14.16 trillion.

Other heavyweight stocks include Airtel Africa Plc (N11.35 trillion); Aradel Holdings Plc (N8.79 trillion); Seplat Energy Plc (N6.89 trillion); and Lafarge Africa Plc (N5.64 trillion).

In the banking segment, Zenith Bank Plc and Guaranty Trust Holding Company Plc maintained their positions among the market’s most valuable lenders with valuations of N5.36 trillion and N4.93 trillion, respectively.

Analysts say the concentration of market value in a handful of large-cap stocks reflects both investor preference for fundamentally strong counters and the growing influence of institutional and foreign portfolio flows targeting liquid names.

The trend may intensify further following Nigeria’s re-entry into the FTSE Frontier Market Index, a development expected to improve foreign investor participation and increase demand for benchmark-weighted Nigerian equities.

Analysts at Cordros Research estimate that Nigeria’s return to frontier market status could trigger foreign portfolio inflows of between $840 million and $1.04 billion, equivalent to N1.15 trillion to N1.42 trillion, driven by index rebalancing and discretionary allocations.

According to the firm, the likely beneficiaries of the expected inflows are the exchange’s most liquid and fundamentally sound counters, particularly those already represented in global benchmark indices.

They noted that improved foreign participation should enhance price discovery and market efficiency, especially in large-cap names across the banking, industrial goods, oil and gas, and consumer goods sectors.

Overall, analysts believe Nigeria’s reclassification into the FTSE Frontier Market universe offers renewed international validation of the local bourse’s improving accessibility and could further strengthen investor appetite for quality Nigerian equities. (THISDAY)

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