The weight of highly capitalized stocks listed on the Nigerian Stock Exchange (NSE) do contribute immensely, no doubt, to the performance of the NSEASI as each trading day goes by. More importantly, this weighty contribution to the performance is more reflective in the market breadth position recorded in any trading day activities. Despite a negative market breadth, a positive movement in the share price of any of the highly capitalized stocks could lift the NSEASI to close in the positive territory.
As of 24th December 2020, the top ten companies by Market CAP accounted for about N16.83trn of the Total Market Capitalisation of N2028trn. This represents 82.97% contribution to the NSE Index.
Companies such as DANGCEM topped the chart as it accounted for 20.59% contribution and closely followed by MTNN which accounted for 16.06%. It is pertinent to state that MTNN at a stage overtook DANGCEM to emerge as the most capitalised stock listed on NSE. This was, however, for a very limited period. AIRTELAFRI emerged the third most capitalised stock accounting for 15.79%. the remaining 153 listed stocks accounted for the remaining 17% contribution to the equity index.
Based on sector representation, Industrial Goods and Financial Services sectors both have three (3) representations each while the ICT and Consumer Goods Sectors accounted for two (2) each.