Shareholders of Airtel Africa Plc, one of the major telecommunications companies quoted on the Nigerian Exchange, again witnessed a massive loss of about N609 billion today, as the stock continued to consolidate its lead on the losers’ chart due to sustained sell pressure on the stock.
The telecom giant had previously lost a whopping N676 billion at the end of trading on Monday to top the losers’ chart. The latest loss on Tuesday brings the cumulative losses to N1.285 trillion in two days of trading sessions.
Checks by Nairametrics showed that the telecom stock dropped by 10% to close at N1,458 per share from N1,620 which was the opening figure at the beginning of day trading.
Like many other stocks, the market sentiment for the telecom firm has been low amidst buy-interests and sell-offs. The bears have been dominating trade proceedings due to uncertainty resulting from the 2023 general election, a recent interest rate hike, and rising inflation.
Speaking to Nairametrics on why Airtel’s stock price has been on a free fall, the Executive Vice Chairman of Hicap Securities Limited, Mr David Adonri, said the stock price is very high and adjusting to the current bearish reality of the market.
Market performance
- Data gathered at the close of trading from Nigerian Exchange Limited (NGX) showed that investors exchanged 420.28 million shares worth N3.62 billion from 137.98 million shares worth N4.32bn traded on Monday.
- The Information and Communication Technology sector occupied the lion’s share of the trading volume with 263.8 million shares representing 62.77%t of the total, followed by the Financial Services sector with 131.77 million shares occupying 31.35%. The Consumer Goods sector was third highest with 6.59 million shares, representing 1.57%.
- By volume, CWG Plc (CWG) was the highest traded stock with 258.79 million of its shares traded in five deals. Guaranty Trust Holding Company Plc (GTCO) was the next with 57.41 million of its shares exchanged in 570 deals on the floor of NGX just as Zenith Bank (ZENITH) came in third highest with 13.16 million of its shares traded in 337 deals.
- Airtel Africa Plc topped the charts by the value of shares traded at N1.35 billion in 37 deals, followed by GTCO at a close of N1.07 billion in 570 deals. ZENITH again was the third highest traded by value at N268.75 million in 337 deals. The NGX All-Share index fell 2.16% to 45,366.32 basis points.
- Sectorally, Indices performance was mixed as the NGX Industrial Goods, NGX Banking and NGX Insurance indices rose by 1.38%, 0.95%, and 0.47% respectively while the NGX Consumer Goods and the NGX Oil/Gas Indices dropped by 1.14% and 0.28% respectively. The top five gaining stocks were United Capital Plc (9.69%), Regency Alliance Insurance Plc (8.33%), Sovereign Trust Insurance Plc (7.69%), Mutual Benefits Insurance Plc (7.41%), and Honeywell Flour Mills Plc (6.84%). On the flip side were Airtel Africa Plc, Nigerian Breweries Plc, CWG Plc, Jaiz Bank Plc, and Coronation Insurance Plc.
