Analysts believed foreign investors’ participation in the trading of Dangote Cement; MTN Nigeria and Airtel Africa stocks drive price appreciation.
According to Ojo, the three companies are the largest companies by market capitalisation on the NGX. If these companies record one per cent gain, it will affect the direction of the stock market. While analysts also lamented what they see as a fragmented stock market with little trading options for investors and dealing members, they opined that the government should prioritise partial privatisation of large public enterprises and get them listed on the Exchange to boost liquidity and create a more diffused market capitalization away from the few companies.
Uwaleke also advocated the partial privatisation of the Nigerian Commodity Exchange and called on the government to put in place policies to support the commodity trading ecosystem as this will help boost the capital market. “It is expected that these companies should have created more wealth for Nigerians due to their huge earnings but the shareholding structure and float has not helped in this matter.