Key Highlights
- Trading activities on the floor of the Nigerian Exchange Limited began the week on a negative trajectory as the benchmark Index closed dropped by 2.08% to close at 53,750.77 points.
- The telecom stock dropped by 8.31% to close at N1,420 per share from N1,548.70 which was the opening figure at the beginning of day trading.
- The decline in share prices can be attributed to investors’ low sentiment informed by the outcome of the 2023 general elections which is being contested in the court law.
Investors of Airtel Africa Plc, one of the major telecommunications companies quoted on the Nigerian Exchange Group Plc (NGX) recorded a loss of about N483 billion at the end of Monday’s trading session as the domestic bourse surrendered to selling pressure.
The market extended its losing streak for the third consecutive session as the benchmark Index closed 2.08% weaker, the biggest single-day decline in the month to close at 53,750.77 points.
The loss: Checks by Nairametrics showed that the telecom stock dropped by 8.31% to close at N1,420 per share from N1,548.70 which was the opening figure at the beginning of day trading.
Further checks revealed that Airtel Africa closed the trading at N5.337 trillion in market capitalization on the Nigerian Exchange (NGX) as against N5.820 trillion when the day’s trading activities began, hence has earned a loss of N483 billion or 8.31%.
Low sentiment: The decline in share prices can be attributed to investors’ low sentiment informed by the outcome of the 2023 general elections which is being contested in the court law.
Politics: The Managing Director of Crane Securities Limited, Mr. Mike Eze in a chat with Nairmetrics said that the election which was seen by many people as falling below expectations is also affecting the prices of stocks as investors; mostly the foreign ones are shying away from the Nigerian stocks. Eze noted further that panic sales on the part of foreign investors are also being witnessed due to election jittery.
What you should know: Trading activities on the floor of the Nigerian Exchange Limited began the week on a negative trajectory as the benchmark Index closed dropped by 2.08% to close at 53,750.77 points.
The market’s weak performance was driven by selloffs in Index heavyweights, Airtel Africa Plc which dropped by -8.31%, MTN Nigeria Plc which declined by -1.27% , and Seplat Energy Plc by -4.17%. Consequently, the ASI’s year-to-date (YTD) return fell to 4.88%, while the market capitalization lost N621.99 billion to close at N29.28 trillion.
Further analysis of the day’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 12.11%. A total of 100.88 million shares valued at N4.34 billion were exchanged in 3,279 deals. GTCO Plc with -0.40% led the volume chart with 12.84 million units traded, while MTN Nigeria with -1.27% led the value chart in deals worth N1.93 billion.
