MTN Nigeria’s share price dropped on the Nigerian Stock Exchange (NSE) a day after some of its centres were attacked in three states. The telecommunication company and other South African companies were subject of a reprisal attack in Nigeria following the Xenophobic attack on Nigerians in South Africa.
Although the company had a decline in its share price at the end of trading on Monday, September 2, 2019, after its share price dropped from N141 (as of Friday, August 30, 2019) to N138.50 kobo per share, it, however, recovered on Tuesday, rising to N140 per share.
Though the rise in MTN Nigeria’s share price happened the day some Nigerians started attacking the South African companies, the market had closed before the violent protest intensified.
[READ MORE: Nigerian Stock Market trades on a negative note]
MTN Nigeria’s share price, however, dropped yesterday, September 5, 2019, following the attack and call for a boycott of its services.
Investors sold off their shares considering the attack in Nigeria and South Africa. Consequently, the company recorded a 1.07% drop in its share price, falling back to what it closed on Monday, N138.50.
Meanwhile, despite the drop in its share price, MTN Nigeria remains the company with the highest market cap ahead of Dangote Cement. But with the situation still tensed, MTN Nigeria’s stock will be on the watchlist of many investors because the company has shut the doors of its centres.
Nairametrics reported that the attack on MTN Nigeria’s customers, facilities and some staff in Lagos, Ibadan and Uyo forced the company to close its stores and service centres across Nigeria until further notice.
According to a statement seen by Nairametrics, the company said, “While we remain committed to providing uninterrupted services, the safety and security of our customers, staff and partners is our primary concern. All MTN stores and service centres will, therefore, be closed as a precaution until further notice.”
“We are engaging all relevant authorities in this regard and urge them to act swiftly to reduce tensions both in South Africa and Nigeria. We will provide further updates as and when possible.”