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MTN Nigeria’s Stock Investors Gain N1 Trillion in Five Months

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Investors Gain N1 trillion from Investing in Stock of MTN Nigeria

MTN Nigeria’s stock investors have gained about N1 trillion between April 2020 and October 2020, according to the Nigerian Communications Commission (NCC).

The commission said Nigerians have started riping the reward of MTN Nigeria listing on the nation’s bourse, asserting that MTN Nigeria’s stock investors have “raked in approximately N1 trillion in price appreciation and dividends since April 2020”.

Dr Ikechukwu Adinde, the Director of Public Affairs, NCC, said listing MTN Nigeria in the Nigerian capital market was as a result of collective efforts of both the Central Bank of Nigeria and the regulatory body.

The listing of MTN was as a result of NCC’s effective regulatory action taken during the mobile network operator’s fine settlement agreement in 2016, which compelled the telco to, among other things, list on the Nigerian Stock Exchange (NSE),” he said.

The statement reads: “The listing was one of the outcomes of the NCC’s stringent regulatory posture, which served as tonic for other telcos such as Airtel to follow the same direction.

“As the country’s independent telecoms regulatory authority, the NCC, working with the Central Bank of Nigeria (CBN), facilitated the landmark listing of the country’s largest telecommunications operator on the bourse.

“That important regulatory action enabled Nigerians, consistent with the Nigerian Communications Act (NCA) 2003, to partly, own, manage and control MTN. This bold and courageous regulatory action is now transforming lives and boosting the economy.

Adinde also explained that listing the telecom giant has helped promote local investment and ownership in the telecom industry.

He said “With MTN shares available in the capital market, it is expected that Nigerians will buy shares and by purchasing the shares of MTN, they will be financially empowered and be socially transformed.” 

“Also, one of the benefits of listing on the NSE is that telcos have enormous opportunity for raising more capital for network expansion, which will, in turn, bring about improvement in the quality of service delivery and quality of experience for telecom consumers,” he added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Stock Market Rises by N398 Billion Last Week as Investors Target Key Sectors

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In a holiday-shortened trading week ending on Friday, June 14, Nigeria’s equities market saw a notable increase, rising by 0.71% or N398 billion.

This boost came as investors focused their buying on key sectors such as oil & gas, banking, insurance, and consumer goods.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) increased from the previous week’s 99,221.14 points to 99,925.29 points, while the Market Capitalisation rose from N56.128 trillion to N56.526 trillion.

This surge pushed the year-to-date (YtD) return higher to 33.64%, with a month-to-date (MtD) increase of 0.62%.

Leading the sector gains was the NGX Oil & Gas Index, which jumped by 5.28%, reflecting robust investor interest in the sector.

The NGX Banking Index followed with a 3.63% rise, demonstrating confidence in the financial sector.

Similarly, the NGX Insurance Index climbed by 3.42%, and the NGX Consumer Goods Index saw a 1.05% increase. The NGX Industrial Index also edged up slightly by 0.27%.

This upward movement in the stock market comes amid a backdrop of cautious optimism.

The holiday-shortened trading week provided a condensed period for trading, yet investors were keen to seize opportunities, particularly in sectors that have shown resilience and potential for growth.

Analysts suggest that the targeted investments in these key sectors indicate a strategic approach by investors to balance portfolios and capitalize on sectors poised for growth.

The oil & gas sector, in particular, has been buoyed by fluctuating global oil prices and local policies aimed at boosting production and refining capacity.

The banking sector’s performance reflects ongoing reforms and the potential for increased financial activities as the economy continues to stabilize.

The rise in the stock market is a positive signal for Nigeria’s economic outlook, indicating renewed investor confidence.

However, experts caution that sustained growth will depend on continued economic reforms, political stability, and global market conditions.

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Nigerian Exchange Limited

Equity Market Rebounds by N144bn, Led by Nigerian Breweries and NEM Insurance

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The Nigerian equity market surged by N144 billion on Thursday, largely on the strong performances of key players like Nigerian Breweries and NEM Insurance.

This recovery comes after the market experienced a dip earlier in the week.

The market indices closed with the All Share Index (ASI) rising by 0.2% to settle at 99,832.25 points, while market capitalization increased to N56.47 trillion.

Despite lower trading volumes and values compared to previous sessions, the market saw increased activity in terms of the number of deals, which rose by 20% to 9,686.

Market Activity and Performance

Trading on Thursday resumed following the Democracy Day holiday, with 502.6 million shares exchanged in various deals valued at N8.65 billion.

The bullish trend was evident with 30 gainers outnumbering 18 losers, highlighting the positive sentiment that dominated trading.

Top Gainers and Losers

Nigerian Breweries emerged as a top performer with a significant 10% increase in its share price to close at N31.90. Unity Bank followed closely with a 9.91% gain, closing at N1.22 per share, while NEM Insurance recorded a 9.77% increase, ending the trading session at N9.55 per share.

Conversely, Ecobank Transnational led the losers’ chart with a 9.92% decline, closing at N21.35 per share. Daar Communications and C&I Leasing also experienced losses, shedding 8.77% and 7.14% respectively.

Trading Insights

Zenith Bank emerged as the most traded stock by volume, with 71.2 million shares exchanged, followed by AIICO Insurance with 67.3 million shares and Access Holdings with 58.5 million shares.

The trading activities were spread across various sectors, with notable gains observed in the insurance, banking, pension, and consumer goods industries.

Market Outlook

The rebound in the equity market reflects renewed investor confidence following recent downturns. Analysts anticipate continued volatility amid global economic uncertainties but remain optimistic about the resilience of Nigerian stocks in the long term.

Overall, the market’s recovery by N144 billion underscores the dynamism of Nigeria’s financial landscape and the strategic positioning of key market players like Nigerian Breweries and NEM Insurance in driving positive market sentiment and performance.

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Nigerian Exchange Limited

Nigerian Equity Market Sees N92.32bn Loss Amid Declines in Key Stocks

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The Nigerian equity market experienced a significant downturn on Tuesday, losing N92.32 billion in market value.

This decline was largely driven by drops in the share prices of key companies, including National Salt Company, Thomas Wyatt Nigeria, and May and Baker Nigeria.

The market capitalisation and the All-Share Index (ASI) decreased by 0.16 per cent, closing at N56.36 trillion and 99,630.51 points, respectively. This downturn affected the year-to-date return, which fell from 33.5 per cent to 33.24 per cent.

Despite the overall market decline, market breadth remained positive, with 29 stocks advancing against 19 that declined, across 8,064 deals. This indicates a mixed sentiment among investors, with some stocks seeing substantial gains.

Key Gainers and Losers

Total Nigeria led the list of gainers with a 9.98 percent increase to close at N388.90. Presco followed closely with a 9.97 percent rise to N323.30, and UPDC leveraged a 9.92 percent gain to end the day at N1.33.

Conversely, National Salt Company recorded a significant drop of 9.91 percent to close at N36.80. Thomas Wyatt Nigeria saw a 9.66 percent decrease to N1.59, and May and Baker Nigeria fell by 7.13 percent to close at N5.60.

Trading Volume Leaders

In terms of trading volume, Fidelity Bank led the market with 293.18 million shares exchanged in 340 deals. Nigerian Breweries followed, trading 101.584 million shares in 145 deals, reflecting strong investor interest in these companies.

Market Dynamics

The losses come on the heels of a robust performance on Monday, where the equity market gained N323 billion, buoyed by appreciations in stocks like Flour Mills Nigeria, Total Nigeria, and Access Holding.

The contrasting performance over two consecutive days underscores the volatility in the market.

Investor Sentiment

The decline in the equity market highlights the fluctuating investor sentiment influenced by various macroeconomic factors and corporate performance. Despite the losses, the positive market breadth indicates underlying resilience, as a larger number of stocks posted gains than losses.

Economic Context

The broader economic environment continues to pose challenges, with inflationary pressures and currency devaluation impacting investor confidence. However, strategic moves by companies and expectations of economic reforms provide some optimism for market recovery.

Outlook

Analysts suggest that the market could see further fluctuations in the short term, with investor focus likely to remain on corporate earnings reports and economic policy developments. The ability of companies to navigate the current economic landscape will be crucial in determining future market performance.

As the market adjusts to these dynamics, stakeholders remain hopeful that strategic investments and economic reforms will foster a more stable and growth-oriented environment for the Nigerian equity market.

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